U.S. Treasury yields inched higher on Wednesday as investors awaited economic data and braced for the rollout of U.S. President Donald Trump’s tariffs.
At 5:02 a.m. ET, the 10-year Treasury yield was higher by more than 2 basis points to 4.176%, while the 2-year Treasury yield also rose by over 2 basis points to 3.883%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
Investors are anticipating the implementation of Trump’s reciprocal tariffs on Wednesday, which he has clarified will target all other countries and not just the top 10 to 15 trading partners.
Three sources familiar with the matter told The Washington Post that the Trump administration is considering imposing roughly 20% tariffs on most imports coming into the country, but several options are still on the table.
Treasury Secretary Scott Bessent told lawmakers on Tuesday that the tariffs coming into effect on Wednesday will be the highest amount set and serve as a “cap.” The White House said on Tuesday that the tariffs “will be effective immediately.”
Investors will also await the ADP employment report for March, which will be released at 7:15 a.m., and will show the change in the number of people privately employed in the United States. Economists polled by Dow Jones are forecasting that private companies added 120,000 jobs last month, up from the 77,000 jobs added in February.
Other economic data on the schedule this week include the ISM Services PMI and weekly jobless claims on Thursday, and nonfarm payrolls on Friday.