NEW YORK — Longer-dated Treasury yields climbed on Monday after the latest tariff announcement from US President Donald Trump, while yields briefly pared gains after data on the manufacturing sector again showed contraction.
Trump said late on Friday he planned to increase tariffs on imported steel and aluminum to 50 percent from 25 percent, ratcheting up pressure on global steel producers and extending his trade war.
“In this environment, with the Federal Reserve on pause at this point, the economic data holding in there, the more recent big news items have been related to the deficit and then with trade, and both of those combined pushes yields higher,” said Jim Barnes, director of fixed income at Bryn Mawr Trust in Berwyn, Pennsylvania.
“If it starts to point in the other direction for the economy going downwards, then the long-end just based on where yields are today, I could see investors starting to move back in there as the economy becomes an area of concern again.”
The yield on the benchmark US 10-year Treasury note rose 4.2 basis points to 4.46 percent after earlier rising to 4.47 percent on the session.
Yields retreated slightly after the Institute for Supply Management (ISM) said its manufacturing PMI edged down to a six-month low of 48.5 last month from 48.7 in April. A reading below 50 signals contraction and it was the third straight month below that threshold.
