NEW YORK- US Treasury yields fell on Tuesday, after economic data indicated weakening in the manufacturing sector and the labor market, and the Trump administration’s upcoming announcement of tariffs added to investor caution.
US manufacturing contracted in March after growing for two straight months. The Institute for Supply Management (ISM) said on Tuesday that its manufacturing PMI dropped to 49.0 last month from 50.3 in February. A reading below 50 signals contraction.
A report from the Labor Department showed US job openings fell in February by 194,000 to 7.568 million, according to its Job Openings and Labor Turnover Survey, or JOLTS report, as uncertainty surrounding the looming tariffs squelched labor demand.
US President Donald Trump is preparing to announce new trade barriers, which have businesses, consumers and investors unnerved about an intensifying global trade war. The Washington Post reported that White House aides have drafted plans for 20 percent tariffs on most goods imported into the United States.
“All of this stuff is just creating a lot of uncertainty in the market,” said Andrew Wells, chief investment officer at SanJac Alpha in Houston.
