As investors process Trump's return to the White House, Treasury yields decline.
On Tuesday, U.S. Treasury yields were lower due to investors processing President Donald Trump's return to the White House and the subsequent executive orders.
At 6:28 a.m. ET, the was down marginally at 4.27%, while the was lower by more than 2 basis points at 4.587%.
Yields and prices move in opposite directions, with one basis point equal to 0.01%.
On Monday, bond markets were closed in observance of Martin Luther King Jr. Day, while investors closely watched as Trump was sworn in as the 47th president of the United States.
At the Capital One Arena, Trump signed over 40 executive orders during his inauguration, with an audience of 20,000 supporters present.
Trump announced plans to impose 25% tariffs on Mexico and Canada starting in February due to their border policies. He also stated that China will face intensified tariffs if it doesn't agree to a TikTok deal.
Trump stated that he is not yet prepared to implement universal tariffs. Investors will closely monitor any pro-business policies that Trump may implement, as he promised during his campaign.
This week, some housing data will be published, including the MBA 30-year mortgage rate on Wednesday and weekly jobless claims on Thursday.
On Friday, investors will anticipate the publication of the S&P Global Composite PMI Flash and the release of existing home sales data.
Markets
You might also like
- Delinquencies are on the rise while a record number of consumers are making minimum credit card payments.
- U.S. economy state weighs on little changed treasury yields.
- European markets predicted to sustain positive growth.
- Trump hints at imposing a 10% tariff on China starting in February.
- David Einhorn believes we are currently in the "Fartcoin" phase of the market cycle.