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.