Treasury yields move lower as investors monitor latest tariff news

U.S. Treasury yields were lower on Wednesday as investors monitored the latest tariff developments after President Donald Trump sent letters dictating new tariff rates to at least 14 countries.

At 4 a.m. ET, the 10-year Treasury yield was down over 1 basis point at 4.399%, and the 30-year bond yield was 2 basis points lower to 4.922%. The 2-year Treasury yield was also down over one basis point to 3.892%.

One basis point is equal to 0.01%. Yields and prices move in opposite directions.

Investors are watching as Trump continues to go back and forth on tariff policies, with the President announcing steep levies on 14 countries on Monday, including Japan, South Korea, Malaysia, South Africa and Myanmar.

The letters, posted by Trump on social media, showed tariff rates ranging from 25% to 40% and is set to take effect on Aug. 1.

Although the president said later in the day that the deadline was “not 100% firm,” on Tuesday, he posted on Truth Social that there would be no change or extensions granted to the Aug. 1 date.

“That's a shift in tone from Trump's own comments on Monday evening, as Trump had said that the August 1 date was 'not 100% firm', and investors had been hopeful that ongoing negotiations and trade deals could avoid that. So it's a clear hardening up of the rhetoric,” Deutsche Bank analysts said in a note.

Additionally, Trump announced further levies on Tuesday, including 50% tariffs on copper imports, and threatened 200% tariffs on pharmaceuticals imported into the U.S.

Investors await the Federal Open Market Committee's meeting minutes, which they will parse for more clues about future monetary policy.