U.S. government debt prices were slightly higher Monday morning, amid trade tensions between the world’s two largest economies and concerns of slowing global economic growth.
At around 02:45 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 1.7223%, while the yield on the 30-year Treasury bond was also lower at around 2.2371%.
Market focus is largely attuned to simmering trade tensions between Washington and Beijing.
On Friday, President Donald Trump said he was not ready to make a deal with China and called into question the next round of trade talks. It comes after the U.S. president said he would impose a 10% tariff on the remaining $300 billion worth of Chinese imports on September 1. China responded by halting its purchases of U.S. agricultural products.
Last week, the U.S. accused China of being a currency manipulator after Beijing allowed the yuan to dip below the 7-per-dollar level for the first time in more than a decade.
On Monday, the People’s Bank of China (PBOC) set its daily midpoint for yuan trading — which determines the limits for its onshore movement — at 7.0211 per dollar. That was weaker than Friday’s session, but stronger than market expectations.
On the data front, the Federal Budget for July is expected to be published at around 2:00 p.m. ET.
Meanwhile, the U.S. Treasury is set to auction $42 billion in 13-week bills and $42 billion in 26-week bills.