US Treasury yields dipped slightly on Wednesday as market participants assessed the state of the US economy, digested recent comments from President Donald Trump, and awaited further economic data releases, CNBC reports.
As of 3:44 a.m. ET, the yield on the benchmark 10-year Treasury note fell by over one basis point to 4.5603%, while the 2-year Treasury yield edged lower by less than one basis point to 4.2720%. Other Treasury yields showed minimal movement, reflecting a subdued trading environment.
One basis point represents 0.01%, and yields and bond prices typically move inversely.
President Trump’s recent actions have drawn significant attention from investors, as they consider the potential economic impact of his administration’s policies. On his first day in office, Trump signed over 40 executive orders, including withdrawing the US from the Paris Climate Agreement and issuing pardons related to the Capitol attack on January 6, 2021.
The president also proposed new tariffs, including a 25% tariff on Mexico and Canada starting in February and a 10% tariff on Chinese goods. These developments could have far-reaching implications for international trade and the US economy.
Investors are closely watching whether Trump will follow through on the pro-business policies he emphasized during his campaign.
This week, several economic indicators are scheduled for release. On Tuesday, the MBA 30-year mortgage rate will be announced, followed by existing home sales data on Friday. Additionally, weekly jobless claims and the S&P Global Composite PMI Flash are set to be published on Thursday and Friday, respectively.
Housing data and labor market reports are expected to provide further insight into the economy’s health and influence future market trends.
Meanwhile, the World Economic Forum in Davos, Switzerland, is underway, with global leaders and corporate executives gathering to address pressing global issues. Discussions at Davos often set the tone for international economic collaboration and policy directions.
