Treasury gives above because traders focus on new Trump tariffs

The US Treasury Yields have changed little on Tuesday as investors continue to evaluate the consequences of President Donald Trump’s tariff letters, which threaten cool duties in several countries, including key allies.

Landmark A 10-year yield was at 1 basic item in 4.407%and 30-year bond yield was 4.93%unchanged. A 2-year-old treasury yield It was also flat by 3.903%.

One base point is 0.01%. Yields and prices have a return relationship.

President Donald Trump announced on Monday that steep new tariffs would come into force for imports from 14 countries that start on August 1.

In Skhawal, he posted screenshots addressed by the leader of Japan, South Korea, Malaysia, Kazakhstan, South Africa, Laos and Myanmar, posting new trading measures.

Later, the second batch of letters is aimed at Bosnia and Herzegovina, Tunisia, Indonesia, Bangladesh, Serbia, Cambodia and Thailand.

Japan should face a hike at a “mutual” tariff rate for the first time announced in April. The White House said Japanese goods in the US will suffer from 25% tariffs, starting on August 1, compared to previously announced 24%.

While Trump said at the end of Monday that the new tariff period on August 1 was “not 100% firm”, a day later he changed his tone. Tuesday president Published on the truth of the social As for the date of August 1 there will be no changes and extensions. Later on this day, Trump also announced the steep 50% tariff on copper imports.

Given this, Trump said he was open for more negotiations. However, the threat of higher tariffs is the creation of winds for investment in the US and increased uncertainty against US inflation, said David Kol, Chief Economist Julius Bayer.

The constant threat of raising tariffs increases the risk of STAGFlationary in the US and is pressure on Europe to stimulate domestic demand as a means to offset the winds in international trade, writes the call in the note.