US Treasury yield falls to 20-month low

The yield on the benchmark 10-year U.S. Treasury fell to a 20-month low as escalating trade tensions between Washington and Beijing continue to unease investors.

The yield on the 10-year note, which moves inversely to price, fell as much as 4.9 basis points to 2.271%, the lowest since September 26, 2017. T

On the 30 year was down 4.8 bps at 2.7023%, a 17-month low while the two-year yield was 3.3 bps lower at 2.1307%.

U.S. Treasury prices have been rallying all through the month as growing fears the deadlock in trade talks and the increasing bickering over the current tariff battle will throw a spanner into US and Chinese economic growth.

The latest moves in bond yields follows President Donald Trump's warning that U.S. tariffs on goods from China could still “go up very, very substantially, very easily.”

“As far as China is concerned, they want to make a deal. I think they probably wish they made the deal that they had on the table before they tried to renegotiate it,” said Trump while visiting his counterpart Shinzo Abe in Japan to strengthen trade relations.

“We’re not ready to make a deal. We’re taking in tens of billions of dollars in tariffs, and that number could go up very, very substantially, very easily."



Source: Smart Trend Team

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