Treasury yields were lower on Monday as investors braced for the week ahead which is set to see U.S. President Donald Trump’s trade tariffs come into force, while key jobs data will also be released.
At 4:03 a.m. ET, the yield on the 10-year Treasury was down by over four basis points to 4.2091%. The 2-year Treasury yield was last more than five basis points lower to 3.8544%.
Yields and prices move in opposite directions and one basis point equals 0.01%.
Investor attention this week will largely be focused on trade tariffs as well as the latest labor market data.
Markets are hoping to gain more clarity about Trump’s tariffs this week, with a series of duties set to come into effect from Wednesday, which has been dubbed “Liberation Day” by the president. Plans for reciprocal tariffs are also expected to be announced by Trump in the coming days.
Investors are hoping that as the levies take hold, at least some of the uncertainty around tariff policy from the U.S. could be alleviated as a clearer picture emerges around how the tariffs will play out in practice. However, it appears likely that negotiations with trading partners will continue beyond the next few days, and retaliatory measures as well as more duties from the U.S. could be imposed.
It is also set to be a busy week on the data front, with several key labor market reports due to be released. This includes February’s JOLTS job openings report on Tuesday, ADP’s private payrolls data for March on Wednesday and the all-important March jobs report, which includes nonfarm payrolls and unemployment figures, on Friday.
Federal Reserve Chairman Jerome Powell is also scheduled to give a speech Friday which investors will also be watching closely.