Treasury yields slip as U.S.-China trade talks enter Day 2
Treasury yields slipped Tuesday as U.S. and Chinese officials resumed trade negotiations in London for the second day.
The 10-year Treasury yield was down almost 3 basis points to 4.456% at 3.30 a.m. ET. The 2-year yield slipped around one basis point to 3.993%. The 30-year yield was lower by 3 basis points to 4.921%.
One basis point equals 0.01%. Yields and prices move inversely in the bond market.
U.S.-China trade negotiations in London resumed on Tuesday, building on a recent call between U.S. President Donald Trump and Chinese counterpart Xi Jinping. On Monday, Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and Trade Representative Jamieson Greer had talks with Chinese officials.
Both sides have intensified diplomatic efforts following weeks of escalating trade tensions and uncertainty sparked by Trump's broad import tariffs on China and other key trading partners in April.
"While we await any concrete news, it's worth remembering that markets have been used to a lot of back-and-forth in recent weeks," Deutsche Bank's analysts said, in reference to how U.S. tariffs slapped on China went all the way up to 145%, before being slashed to 30%, among other instances of policy reversals.
"There've been several twists and turns already, and markets are getting fairly used to this uncertainty by now," wrote in a note published Tuesday.
Deflation in China is also putting pressure on the Chinese government to negotiate a trade deal with Trump that benefits both countries, said Ed Yardeni, president of Yardeni Research. China's consumer prices fell for a fourth consecutive month in May, with the CPI falling 0.1% from a year earlier, data from the National Bureau of Statistics showed on Monday.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
12 minutes ago
- Yahoo
Why are more Americans filing for Social Security benefits?
(NewsNation) — More older Americans are claiming their Social Security benefits earlier, a potentially alarming trend that could significantly reduce the income many rely on in their golden years. As of May, individual retirement claims are up 13% in the current fiscal year compared to the same period last year, an increase of nearly 320,000 claims, according to the latest Social Security data. To put the recent surge in perspective: From 2012 to 2024, retirement claims rose by an average of just 3% per year, according to an analysis by the Urban Institute, a research group. Plan to garnish Social Security checks for student loan debt paused Part of the recent uptick is due to more retirees claiming Social Security benefits earlier, a choice that permanently reduces their monthly checks if done before full retirement age. Jack Smalligan, a senior policy fellow at the Urban Institute, described the increase in earlier claims as 'disconcerting' because it can impact people's 'long-term retirement security.' 'For most individuals, delaying the time that they claim Social Security is a smart retirement decision,' Smalligan said. While demographic factors, such as an aging population, have contributed to the rise, increased concern over the Trump administration's handling of the system may also help explain the surge. Social Security data shows the spike in monthly claims was especially pronounced in November and January — the month Trump was elected and the month he took office. Polling shows public concern about Social Security is now at a 15-year high, an uptick that coincides with the Trump administration's plans to slash the agency's workforce. The president and advisers, like Elon Musk, have made unfounded claims about rampant fraud within the system, while website outages have also caused confusion. Smalligan pointed to the recent surge in calls to Social Security and the rise in field office visits as further signs of growing anxiety. At the same time, top Democrats, including former President Joe Biden, have amplified those fears with misleading claims that give the impression Americans' monthly retirement checks may not arrive. Democrats sound alarm on Social Security as Biden returns to stage Senate Minority Leader Chuck Schumer has warned that Trump and Musk are coming for people's benefits and hiding behind bogus fraud claims to justify stealing people's checks. The political rhetoric appears to be resonating, but it's also fueling the broader uncertainty, potentially causing real harm. During a meeting in March, Social Security officials said that 'fearmongering has driven people to claim benefits earlier,' The Wall Street Journal reported. Overall, 52% of Americans say they worry a 'great deal' about the Social Security system, up from 43% in 2024, according to Gallup. Among Democrats and Democratic-leaning independents, that figure rises to 65% — a 30-point increase from the previous year. 'No one's scheming right now to privatize Social Security or dismantle it … that type of fearmongering is not helpful,' said Charles Blahous, a researcher at the Mercatus Center at George Mason University who specializes in Social Security. While Social Security does face long-term financial challenges, the system isn't going away, and future policy uncertainty isn't a good reason to claim benefits early today, Blahous said. Trump has repeatedly promised not to cut Social Security benefits, while Democrats argue that staffing reductions will make it harder for retirees to access services, undermining the system in a different way. Other factors, unrelated to political rhetoric, could also be driving the rise in retirement claims. There are three key reasons for the uptick, according to a Social Security official: The start of the peak 65 baby boom, a massive surge of Americans turning 65 years old Implementation of the Social Security Fairness Act, which increased benefits for certain workers receiving pensions from jobs not covered by Social Security Improved outreach notifying spouses of Social Security beneficiaries that they may be eligible for a higher benefit Blahous acknowledged that the three factors are real but thinks 'the jury's still out' on how much of the recent rise is due to anxiety about the program's future. Another possibility is that stock market volatility, partly driven by Trump's ever-changing trade policies, temporarily lowered the balances of millions of retirement accounts and prompted some older Americans to claim their more reliable Social Security benefits earlier than planned. Americans can start collecting Social Security retirement benefits as early as age 62, but that doesn't mean they should. Claiming before full retirement age permanently reduces monthly benefits, which is why waiting often makes more financial sense. It's even more concerning when that decision is driven by fear about the program's future rather than a careful assessment of personal circumstances. 'It's basically an irrevocable decision, which is all the more reason why people should be very cautious about when they make it,' Blahous said. When is the best age to take Social Security? Someone who turns 62 in 2025 would see their monthly benefit lowered by about 30% versus what it would be at their full retirement age of 67. On the other hand, those who delay claiming until after their full retirement age receive an 8% increase for each year they wait, up to age 70. That can amount to thousands of dollars. In 2025, the maximum Social Security benefit is $2,831 for someone retiring at 62, but it rises to $5,108 for those retiring at 70. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
12 minutes ago
- Yahoo
US and China agree on trade framework after two days of talks in London, Chinese negotiator says
The United States and China have agreed on a trade framework after two days of negotiations in London, China's trade negotiator Li Chenggang told reporters on Wednesday, according to Chinese state broadcaster CGTN. The two sides 'have agreed in principle on the framework for implementing the consensus reached by the two heads of state during their phone talks on June 5 and at Geneva talks last month,' he said. The US and Chinese officials will now take the proposal back to their leaders for approval, US Commerce Secretary Howard Lutnick told reporters in a separate briefing in London, Reuters reported. 'The idea is we're going to go back and speak to President Trump and make sure he approves it. They're going to go back and speak to President Xi and make sure he approves it, and if that is approved, we will then implement the framework,' he said. The latest round of talks, held Monday and Tuesday, followed a long-anticipated phone call last week between US President Donald Trump and Chinese leader Xi Jinping. The call appeared to ease tensions that emerged over the past month after a surprise agreement in Geneva was announced in May. After talks in the Swiss city, the two sides had agreed to drastically reduce tariffs on each other's goods for an initial 90-day period. Initially, the mood was upbeat. However, sentiment soured quickly over two main sticking points: China's control over so-called rare earth minerals and its access to semiconductor technology originating from the US. Lutnick said that China's restrictions on exports of rare earth minerals and magnets to the US will be resolved as a 'fundamental' part of the framework agreement, according to Reuters. 'Also, there were a number of measures the United States of America put on when those rare earths were not coming,' Lutnick said. 'You should expect those to come off, sort of as President Trump said, in a balanced way.' CNN has reached out to the White House for comment. This is a developing story and will be updated.
Yahoo
13 minutes ago
- Yahoo
House Republicans tee up tweaks to Trump megabill
House Republican leaders on Tuesday teed up changes to the 'big, beautiful bill' of President Trump's tax cut and spending priorities that are slated to come up for a vote of the full chamber this week. The tweaks come after the Senate parliamentarian reviewed the sprawling package and identified provisions that do not comply with the upper chamber's procedural requirements for using the budget reconciliation process, which allows Republicans to circumvent a Democratic filibuster and approve the legislation by simple majority. Leaving the language in the bill risks losing the ability to pass the bill under budget reconciliation. The parliamentarian's process is known as the 'Byrd bath.' The adjustments impacted a number of policy areas including defense funding, energy policy and changes to Medicaid. On the defense front, House GOP leaders are nixing $2 billion for the enhancement of military intelligence programs; $500 million for the development, procurement and integration of maritime mines; and $62 million to convert Ohio-class submarine tubes to accept additional missiles. The changes also removed a provision that would have reinstated leases for a proposed copper and nickel mine that had been renewed under the first Trump administration but revoked under Biden. The mine would have been located near an area known as the Boundary Waters Canoe Area Wilderness, a nature preserve that contains canoe routes and species including black bears, moose and foxes. One House Republican described the lower chamber's tweaks as preventing 'fatalities' from remaining in the bill when it hits the Senate. 'There are a small number, I mean, could count them on one hand, of fatalities that have been identified by the parliamentarian,' the GOP lawmaker said. 'Of course we can't transmit the bill with fatalities so those fatalities will be cured through a rule this week.' While the lower chamber is planning to strip those terms from the bill, party leaders are not giving up on the policy: House Majority Leader Steve Scalise (R-La.) said Senate Republicans will fight for the provisions when the bill hits the floor. 'We disagree; ultimately we're going to try it again on the Senate floor,' Scalise told reporters. 'We disagree with the parliamentarian. … But you can't take the risk on any of them. You cannot take the risk because if any one of them is ruled on the Senate floor to be fatal, it's a 60-vote bill. The whole bill is a 60-vote bill — you can't take that risk.' The full House will vote on approving those changes this week, with the adjustments tacked on to a 'rule' resolution — a procedural measure that governs debate for legislation. The rule making the fixes to the megabill will also tee up the terms of debate for unrelated legislation to claw back $9.4 billion in funding for foreign aid and public broadcasting. It advanced out of the Rules Committee on a party-line, 8-4 vote Tuesday evening. Rule resolutions are typically passed along party lines and are tests of party loyalty, but Republicans sometimes buck leadership and vote against the procedural rules in protest of process or policy. Rep. Thomas Massie (Ky.) — one of two House Republicans who voted 'no' on the bill when it passed the House last month — voiced his disapproval of making the changes to the bill via a rule in a post on the social platform X. 'Nancy Pelosi once said the House needed to vote for a bill to find out what was in it. Today @SpeakerJohnson said 'hold my beer.' He just announced he's using the Rules Committee to change the text of the Big Beautiful Bill a week after we voted on it!' Massie said. While House Republicans have already passed the bill in the lower chamber, they have not officially transmitted it to the Senate — enabling them to make the fixes via the rule mechanism. Republicans are using the budget reconciliation process to push the megabill through Congress while avoiding the Senate's 60-vote cloture rule, enabling them to pass the bill on party lines without support from Democrats. The tweaks in the House come as party leaders are holding out hope that they can enact the package by July 4, which was their self-imposed deadline. Trump, however, opened the door to the process blowing past that timeline, saying if it 'takes a little longer, that's OK.' Updated at 8:33 p.m. EDT. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
