10-Year Treasury Yields Rise as Trump Delays Tariff Reinstatement, Threatens New Trade Measures
The yield on the U.S. 10-year Treasury rose on Monday as global markets reacted to President Donald Trump’s announcement that the 90-day tariff reprieve would be extended, delaying the reimposition of higher tariffs. The benchmark 10-year yield climbed by 3 basis points to 4.369%, while the 30-year Treasury increased 5 basis points to 4.901%. The 2-year yield remained unchanged at 3.882%. Investors are interpreting these moves as signs of growing uncertainty in international trade relations.
The 90-day tariff pause, initially set to expire this week, will now extend until August 1, according to Trump and Commerce Secretary Howard Lutnick. They clarified that reciprocal tariffs would revert to their previous levels on that date for countries that haven’t reached trade deals with the U.S. Lutnick emphasized that President Trump is already working on setting new tariff rates and trade agreements.
Treasury Secretary Scott Bessent echoed the administration’s firm stance, warning that trading partners will receive formal notices about the August 1 deadline. He indicated that if progress isn’t made, tariff rates will return to their April 2 levels, putting pressure on nations to strike deals quickly. This rhetoric has added further tension to already strained global trade dynamics.
Escalating the situation, Trump threatened to impose an additional 10% tariff on countries that align with BRICS and what he termed “anti-American policies.” The BRICS bloc — comprising Brazil, Russia, India, China, and South Africa — is currently meeting in Rio de Janeiro. In response, BRICS leaders issued a joint statement condemning the U.S. administration’s “unjustified unilateral protectionist measures.”
Despite the heightened trade drama, the economic calendar for the week remains relatively quiet. However, investors will closely monitor the release of the Federal Open Market Committee (FOMC) meeting minutes on Wednesday and the weekly jobless claims report on Thursday. These events may provide further insight into the Federal Reserve’s policy direction amid rising geopolitical tensions and economic uncertainty.
Source: CBNC