Nov 21, 2019

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

Expand chart
Data: FactSet; Chart: Axios Visuals

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:

Go deeper

U.S. and China reach "phase one" trade deal to avert December tariffs

Photo: Artyom Ivanov/TASS via Getty Images

The U.S. and China agreed to a "phase one" trade deal on Friday, which President Trump touted in a series of tweets.

The state of play: The deal averts a new round of tariffs scheduled to go into effect on Dec. 15, and a Chinese official said that the U.S. would reduce its tariffs on Chinese goods in stages, per Bloomberg. The deal includes an agreement from China to increase imports from the U.S. and purchase agricultural goods.

Go deeperArrowUpdated Dec 13, 2019

Trump brings the trade war back to life

Illustration: Sarah Grillo/Axios

The trade war looks to be back on in a big way after a series of pronouncements from President Trump and the White House.

The latest: Trump told reporters in London Tuesday he had "no deadline" for a China deal and that he liked "the idea of waiting until after the election for the China deal."

Go deeperArrowDec 3, 2019

Trump administration to offer additional relief to farmers amid trade war

Photo: Ricky Carioti/The Washington Post via Getty Images

The Department of Agriculture will distribute the second round of aid payments for 2019 aimed at buffering the impact of President Trump's trade war with China starting next week, according to a USDA statement.

The state of play: The administration already paid farmers $6.7 billion for production in this year and $8.6 billion last year, per Politico. The earlier payment in 2019 covered half of the farmers' eligible production, and the latest round will cover an additional quarter.

Go deeperArrowNov 16, 2019