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U.S. Treasury Yields Dip as Investors React to Trump’s Executive Orders

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U.s. Treasury Yields Chart January 2023

WASHINGTON, D.C. — U.S. Treasury yields declined on Tuesday as investors assessed President Donald Trump‘s return to the White House and a series of new executive orders. At 6:28 a.m. ET, the 10-year Treasury yield dropped by more than 2 basis points to 4.587%, while the 30-year yield edged down to 4.27%.

Bond markets had been closed on Monday in observance of Martin Luther King Jr. Day. Investors closely monitored Trump’s inauguration as the 47th U.S. president, which took place at the Capital One Arena before an audience of 20,000 supporters.

During his speech, Trump hinted at potential economic policies, including a 25% tariff on Mexico and Canada starting in February, citing border policy concerns. He also warned China of intensified tariffs if it fails to approve a TikTok deal. However, Trump clarified that universal tariffs are not yet on the table.

Market participants remain cautious, awaiting the implementation of pro-business policies Trump promised during his campaign. This week, key economic data will be released, including the MBA 30-year mortgage rate on Wednesday and weekly jobless claims on Thursday. On Friday, investors will focus on the S&P Global Composite PMI Flash and existing home sales figures.