Investing.com - U.S. government debt prices inched lower on Monday, pushing yields higher across the curve and the 10-Year note to a four-month high, as investors took fright at news Washington was set to announce a new round of tariffs on Chinese goods in the latest escalation of their trade conflict.
The yield on 10-year U.S. Treasury notes rose as high as 3.022%, the strongest level since May 22. It was last at 3.013% by 8:45AM ET.
Meanwhile, the yield on the 30-year Treasury bond stood at 3.151%.
Bond yields move inversely to prices.
As a new week kicks into action, the U.S.-China trade spat will likely remain a key driver of sentiment.
U.S. President Donald Trump is likely to announce new tariffs on about $200 billion on Chinese imports as early as Monday, according to a senior administration official.
The tariff level will probably be about 10%, the Wall Street Journal reported, far below the 25% the administration said it was considering for this possible round of tariffs.
The Journal later reported that China may decline to participate in proposed trade talks with the U.S. later this month if the Trump administration moves forward with additional tariffs on imported Chinese goods, as Beijing won't negotiate under threat.
Officials are also considering potential retaliation steps, the report said.
U.S.-Sino trade-war fears have been simmering for months. Neither side is showing any signs of backing down, fueling worries that world's two largest economies are spiraling towards a trade war that could shake the global economy.