10-year Treasury yield slumps as U.S.-China trade deal remains elusive

The yield on the U.S. 10-year Treasury note touched a three-week low on Wednesday after a Reuters report dashed hopes the U.S. and China would sign a "phase one" agreement before the end of the year.

The details: A trade "deal is still elusive, and negotiations may be getting more complicated," per Reuters.

• Yields also ticked slightly lower around 2 p.m. ET, when the Fed released minutes from its last policy meeting. Stocks retreated further from all-time highs.
• Earlier this week, President Trump threatened to "raise tariffs even higher" if the U.S. and China don't strike a deal.

The latest from the Wall Street Journal: China is inviting U.S. negotiators to Beijing for a new round of talks.

What they're saying: "The sooner ... phase one is signed (regardless of the details) the better, because both sides want a deal, so the longer it’s delayed, the more the market will begin to assume a deal isn’t possible," Tom Essaye, founder of market research firm Sevens Report Research, wrote in a note to clients.

Go deeper:

• More Americans say they're feeling the cost of tariffs
• Tariff revenue spiked to a record $7 billion in September
• Trump administration to offer additional relief to farmers amid trade war