U.S. Treasury yields were slightly higher Monday as investors awaited more clarity on U.S. President Donald Trump’s plans to impose tariffs from Tuesday.
At 5:00 a.m. ET, the benchmark 10-year yield Treasury yield was one basis point higher at 4.24%. The 2-year Treasury yield was nearly three basis points higher at 4.02%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Treasurys
Investors are expecting data on business activity in the manufacturing sector, with the release of the S&P Global Manufacturing PMI report and ISM Manufacturing PMI report on Monday at 10 a.m. ET set to offer clues about the health of the U.S. economy.
For both reports, a reading above 50 indicates growth while a reading below 50 signals a contraction.
Trump’s tariff plans are again in focus this week, with 25% duties on imports from Canada and Mexico expected to go into effect from Tuesday.
Commerce Secretary Howard Lutnick said Sunday on Fox News that the 25% tariff against Canada and Mexico are “fluid” which means it may be lower. The 10% duty on China imports is “set,” he added.
Traders have expressed concerns about the effects of tariffs on the economy, as legendary investor Warren Buffett made a rare comment against Trump’s policies over the weekend.
Buffett, the chairman and CEO of Berkshire Hathaway, said tariffs are “an act of war, to some degree” and could trigger inflation and hurt consumers.
“Over time, they are a tax on goods. I mean, the Tooth Fairy doesn’t pay ’em!” Buffett added. “And then what? You always have to ask that question in economics. You always say, ‘And then what?'”