US 10-year Treasury yield hits one-month high on trade optimism
|- US 10-year yield has risen to a one-month high of 1.76%.
- The yield has increased by more than 30 basis points in nine days.
A gradual de-escalation of US-China trade tensions is boding well for US treasury yields.
The yield on the benchmark 10-year Treasury yield is currently trading at 1.76% – the highest level since Aug. 8 – representing a two basis point gain on the day.
The uptick could be associated with the US President Trump's decision to delay the hike in tariffs on $250 billion worth of Chinese goods from current 25% to 30% to Oct. 15. The tariff hike was initially set to take effect on Oct. 1.
Trump's decision comes a day after China announced exemption for some US products like industrial grease from a recent round of tariffs.
Also, Politico reported last week about China's peace proposal to buy a modest amount of US agricultural goods.
The easing trade tensions seem to have weakened the haven demand for Treasuries over the seven days, allowing yields to recover ground. It is worth noting that the 10-year yield has added more than 30 basis points since bottoming out at 1.428% on Sept. 3.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.