investors weigh new Trump tariffs
U.S. Treasury yields were little changed to start the week as investors weighed President Donald Trump’s latest tariffs after the Supreme Court struck down most of the tariffs on Friday.
At 03:47 ET, 10 year Treasury Its yield decreased by less than 1 basis point to 4.076%. The yield on the 30-year Treasury note also fell less than 1 basis point to 4.72%. The 2-year Treasury bill yield also remained almost constant at 3.47%.
One basis point equals 0.01%, and yields and prices move in opposite directions.
On Friday, the Supreme Court invalidated most of Trump’s “reciprocal” tariffs in a 6-3 decision; This decision said the president incorrectly used the International Emergency Economic Powers Act (IEEPA) to impose the tariffs. They said the law supporting import duties “does not give the President the authority to impose tariffs.”
Despite this, Trump retaliated on Saturday, saying he was increasing global tariffs from 10 percent to 15 percent, which would be “effective immediately” and that additional taxes would follow. Investors are closely following the latest tariff situation.
“I, as President of the United States, will, effective immediately, increase the 10% World Tariff on Countries, many of which have “exploited” the United States for decades, with impunity (until I show up!) to the fully permissible and legally tested level of 15%,” Trump wrote in a post on Truth Social.
Investors are also awaiting some economic data on Monday, including durable goods orders and factory orders, and are eagerly awaiting the producer price index on Friday.
