The treasury yields have seen a decline as United States president Donald Trump threatens to put more tariff as US China trade war is increasing.
Due to the ongoing US China trade war, the Treasury yields fell as Donald Trump indicated to impose more tariff. The US president said ahead of his meeting with Chinese President Xi Jinping. However, the meeting will be held this weekend at G-20 summit in Argentina.
Donald Trump said that there was a little chance that he will accept the request of China to hold off on raising tariffs on Chinese imports worth $200 billion.
This year, the bond issuance has raised steadily to pay for Trump’s expenditure and tax cuts increases. Although, a large number of market participants showed concerns that the raised supply will demolish demand. In addition, fears of some were intercepted when the Treasury sold $39 billion of the 2 year notes to high demand from the direct bidders.