The 10-year Treasury yield ticked lower on Tuesday as U.S. President Donald Trump’s tariffs on Canada, Mexico and China went into effect.
The benchmark 10-year Treasury yield slipped around 1 basis point to 4.168%, while the 2-year Treasury yield slid over 3 basis points to 3.945% at around 2:54 a.m. ET.
One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
Treasurys
Trump’s 25% tariffs on goods from Mexico and Canada took effect Tuesday.
The president imposed an additional 10% duty on Chinese goods, bringing the total amount of new tariffs on China to 20%.
In retaliation, China announced that it will impose additional tariffs of up to 15% on some U.S. goods from March 10. The new Chinese tariffs primarily affect U.S. agricultural products, such as corn and soybeans, which will face additional duties of 15% and 10%, respectively.
Canadian Prime Minister Justin Trudeau said Canada will be implementing 25% tariffs on 155 billion Canadian dollars’ ($107 billion) worth of American goods.
Last week, the Cboe Volatility Index rose as Trump and Ukraine President Volodymyr Zelenskyy traded barbs in the Oval Office, raising concerns about heightened geopolitical risks.
Investors will also be looking to February’s nonfarm payrolls, which will be released on Friday, alongside unemployment figures in the same month.