The 10-year yield slipped on Tuesday as U.S. and Chinese officials continued trade negotiations in London for a second day.
The 10-year Treasury yield was down by 1.2 basis points at 4.472%. The 2-year yield added more than one basis point to 4.016%. The 30-year yield was lower by 2.3 basis points to 4.931%.
One basis point equals 0.01%, or 1/100th of 1%. Yields and prices mover inversely in the bond market, meaning higher prices equal lower yields and vice versa.
U.S.-China trade negotiations in London resumed on Tuesday, after Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer held talks with Chinese officials on Monday.
Lutnick told reporters on Tuesday that the discussions could run into Wednesday if need be.
“I think the talks are going really, really well. We’re very much spending time and effort and energy – everybody’s got their head down working closely,” Lutnick said on Tuesday.
Both sides have intensified diplomatic efforts following weeks of escalating trade tensions and uncertainty sparked by Trump’s broad import tariffs on China and other key trading partners in April. The discussions build on a recent call between U.S. President Donald Trump and Chinese President Xi Jinping.
Deflation in China is also putting pressure on the Chinese government to negotiate a trade deal with Trump that benefits both countries, said Ed Yardeni, president of Yardeni Research. China’s consumer prices fell for a fourth consecutive month in May, with the CPI falling 0.1% from a year earlier, data from the National Bureau of Statistics showed on Monday.