The yield on the US 10-year Treasury note rose by about 6 basis points to 4.39% on Thursday, its highest level in nearly a month, as traders evaluated the intensifying trade conflict and its potential economic consequences.
Treasury yields March higher on tariffs concerns
The Trump administration unveiled a 25% tariff on "all cars not made in the United States," set to take effect on April 2, while President Trump warned of imposing "far larger" tariffs on the EU and Canada if they work together to counter US trade actions. Growing concerns are emerging that these tariffs could harm the US economy and drive inflation higher, especially as economic indicators suggest possible challenges ahead.
Consumer confidence declines
The latest Conference Board (CB) Consumer Confidence report revealed a decline in March, hitting its lowest level in four years. Moreover, orders for non-defense capital goods excluding aircraft fell by 0.3%, missing expectations for a 0.2% increase. Investors are now looking ahead to the final Q4 GDP growth estimate and the latest jobless claims report, both set to be released today, while the PCE report is scheduled for tomorrow.
