Treasury yields mixed as investors follow US-China trade talks

  • Investors are taking a cautious approach as the Federal Reserve sounds more dovish.
  • Speaking to CNBC on Monday, Chicago Federal Reserve President Charles Evans said that he’d be comfortable leaving interest rates untouched until autumn 2020.

U.S. government debt prices were mixed Tuesday as traders cautiously weighed the prospects of a cute to rates and monitored trade talks between China and the U.S.

The yield on the benchmark 10-year Treasury note dropped to about 2.5507 percent, while the yield on the 30-year Treasury bond rose to 2.9674 percent. Bond yields move inversely to prices.

Symbol Yield   Change %Change
US 3-MO
US 1-YR
US 2-YR
US 5-YR
US 10-YR
US 30-YR

Investors are taking a cautious approach as the Federal Reserve sounds more dovish. Speaking to CNBC on Monday, Chicago Federal Reserve President Charles Evans said that he’d be comfortable leaving interest rates untouched until autumn 2020.

Traders will also monitor a speech by the Dallas Fed President Robert Kaplan at 2 p.m. ET.

In terms of trade, the U.S. and Japan have started negotiations in Washington on Monday, as President Trump seeks to reduce Japan’s deficit with the U.S. Elsewhere, China and U.S. officials are reportedly close to striking an agreement.

In terms of data, there will be Biz leader’s survey at 8.30 a.m. ET, industrial production and capacity utilization due at 9.15 a.m. ET; and the NAHB survey will be out at 10 a.m. ET.

There are no Treasury auctions planned.

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