The 10-year Treasury yield advanced n Wednesday as investors considered the effect of President Donald Trump's tariffs along with new data on U.S. private payrolls.
The benchmark 10-year yield climbed about 7 basis points to 4.282%. The 2-year Treasury yield added almost 5 basis points to 4.003%.
One basis point is equal to 0.01%, and yields and prices have an inverted relationship.
Investors are concerned about the potential effect of Trump's tariffs after 25% duties on imports from Canada and Mexico came into effect on Tuesday. The president also imposed an additional 10% tariff on goods from China. Canada, Mexico and China responded by preparing retaliatory measures against the U.S.
Commerce Secretary Howard Lutnick suggested that a compromise with Canada and Mexico could be reached. The White House said Wednesday that it granted a one-month extension to automakers and was open to more delays on the taxes.
New data on U.S. private payrolls that came in far below economists' expectations did not help sentiment. However, ISM data on the services sector was slightly better than economists predicted.
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