US Treasury yields tick lower as trade tensions continue

U.S. government debt yields continued to fall Thursday morning after President Donald Trump declined to set a deadline on levying tariffs on another $325 billion of Chinese goods.

At around 4.00 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at 2.1117%, while the yield on the 30-year Treasury bond was down to around 2.6112%.

Meanwhile, Wednesday’s consumer price index data rose a seasonally adjusted 0.1% in May, while costs excluding volatile energy and food components also rose 0.1%.

Prices climbed 1.8% from the previous year while the so-called core gauge rose 2%, both falling short of economists’ expectations.

Investors will also be monitoring May imports data and last week’s jobless claims figures, both of which are due for release at 8.30 a.m. ET.

The Treasury is due to auction $40 billion in 4-week bills and $35 billion in 8-week bills Thursday. There are no key Fed speeches scheduled.

Elsewhere, oil prices pared some of their recent losses on Thursday, following a sharp sell-off in the previous session. Crude futures tumbled as much as 4% on Wednesday, slipping to near five-month lows amid continued increases in U.S. crude stockpiles and concerns about lower demand growth.

Oil prices rebounded more than 2% Thursday morning amid reports of a tanker incident in the Gulf of Oman.

International benchmark Brent crude traded at around $61.58 during early morning deals, up nearly 3%, while U.S. West Texas Intermediate (WTI) stood at $52.38, up more than 2%.

Source: CNBC

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