Treasury Yields Rise as Investors Brace for Trump’s Tariff Rollout and Economic Data

U.S. Treasury yields experienced a slight increase on Wednesday as investors eagerly awaited economic data and the rollout of President Donald Trump’s new tariffs. By 5:02 a.m. ET, the 10-year Treasury yield had risen by more than 2 basis points, reaching 4.176%, while the 2-year Treasury yield also saw a similar increase, moving to 3.883%. These yield movements come as market participants focus on upcoming economic reports and the potential impact of the new tariffs.

The primary event driving market attention is the expected implementation of Trump’s reciprocal tariffs on imports, which are set to target not only the top trading partners but a broader range of countries. Sources indicated that the administration is considering imposing tariffs of approximately 20% on most imports. The tariffs, which Treasury Secretary Scott Bessent described as the highest level and a “cap,” are scheduled to take effect immediately, intensifying market concerns about their potential impact on global trade.

In addition to the tariff news, investors are closely watching the release of key economic data. The ADP employment report for March, set to be released at 7:15 a.m., will show the change in the number of private sector jobs in the U.S. Analysts predict a significant increase in job growth, with private companies expected to add 120,000 jobs in March, up from February’s 77,000. This data will help investors gauge the health of the labor market ahead of the upcoming nonfarm payrolls report later in the week.

Further economic indicators, including the ISM Services PMI and weekly jobless claims, are set to be released on Thursday, while the March nonfarm payrolls report will come out on Friday. These reports will provide more insights into the economic recovery and could influence Treasury yields and market sentiment in the days ahead.

Source: CNBC