NEW YORK/WASHINGTON- US Treasury yields slipped on Tuesday, pressured by weak consumer confidence data and as a still uncertain economic outlook over shadowed initial optimism about President Donald Trump’s potential flexibility on a fresh round of tariffs set to be imposed next week.
The benchmark 10-year Treasury yield fell to session lows after the release of Conference Board data showing that the consumer confidence index fell to a four-year low of 92.9, with households reporting the greatest pessimism in 12 years.
The yield was last down 2.7 basis points (bps) at 4.304 percent after earlier hitting a one-month high of 4.369 percent.
“Consumers are still pessimistic about their income prospects, they’re still worried about tariffs,” said Vinny Bleau, director of fixed-income capital markets at Raymond James in Memphis. “The narrative seems to be shifting more toward the fact that tariffs are going to impact growth more than inflation.”
