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U.S. Treasury yields fell as investors reacted to President Trump's inauguration and new executive orders, including potential tariffs on Mexico, Canada, and China.

Rachel Patel21 January 2025Last Update : 16 hours ago

www.cnbc.com

U.S. Treasury yields fell on January 21, 2025, as investors reacted to President Donald Trump’s inauguration as the 47th president of the united states. Trump signed over 40 executive orders shortly after his swearing-in ceremony at the Capitol, where he addressed a crowd of 20,000 supporters.

6 Key Takeaways

U.S. Treasury yields decreased on Tuesday.
10-year Treasury yield at 4.587%.
Trump signed over 40 executive orders.
Potential tariffs on Mexico and Canada.
Housing data to be published this week.
Investors await S&P Global Composite PMI.

Fast Answer: U.S. Treasury yields declined as President Donald Trump was inaugurated on January 21, 2025. He signed over 40 executive orders and discussed potential tariffs on Mexico, Canada, and China, impacting investor sentiment.

Following the Martin Luther King Jr. Day holiday, bond markets opened with the 10-year Treasury yield dropping by more than 2 basis points to 4.587%. The 2-year Treasury yield also saw a slight decrease, settling at 4.27%. Investors are closely monitoring these yields, as they often reflect broader economic expectations.

During his inauguration, Trump emphasized his intention to impose tariffs, suggesting a 25% tariff on imports from Mexico and Canada starting in February. He also indicated that China could face increased tariffs if it does not agree to a deal regarding the social media app TikTok. However, Trump noted that he is not yet ready to implement universal tariffs.

This week, additional economic data is expected to influence market conditions. Key reports include the MBA 30-year mortgage rate on Wednesday and weekly jobless claims on Thursday. Investors will also be looking forward to the S&P Global Composite PMI Flash and existing home sales data, both scheduled for release on Friday.

Notice: Canadian readers should be aware of potential tariff changes that may affect trade relations and economic conditions between Canada and the U.S. as President Trump implements his policies.

In summary, Trump’s inauguration and subsequent executive actions have led to fluctuations in U.S. Treasury yields, reflecting investor uncertainty about future economic policies. The upcoming economic data releases will be crucial for understanding the market’s direction in the coming weeks.