
The yield on the 10-year Treasury slid on Tuesday as traders assessed global trade tensions and awaited more economic data.
The benchmark yield was down more than 3 basis points to trade at 4.511%, while the 2-year Treasury yield fell less than 5 basis points at 4.216%.
One basis point is equal to 0.01%, and yields and prices move in opposite directions.
Investors are concerned that ongoing trade friction could slow economic growth and lead to higher bond prices.
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China announced on Tuesday that it will respond with a series of retaliatory measures against the U.S. and will impose additional tariffs of up to 15% on select imports.
The move comes after President Donald Trump imposed on Saturday a 10% tariff on goods coming from China. That's in addition to the 25% tariff that had been implemented in his first term.
Traders were relieved Monday as Trump agreed to put a pause on tariffs on Mexico and Canada for at least 30 days, as both countries agreed to implement measures preventing the trafficking of opioid fentanyl into the U.S.
Money Report
On the economic front, they're anticipating the January nonfarm payrolls report, which is due to be published on Friday and will provide insights into the employment picture.