Traders work on the floor at the New York Stock Exchange on March 24, 2025.
Treasury yields fell on Tuesday as investors digested some weak economic data, while also waiting details on U.S. President Donald Trump's tariff policy.
The yield on the 10-year Treasury lost 7.8 basis points 4.167%. The 2-year Treasury yield ticked down 4.1 basis points to 3.871%.
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WATCH HEREOne basis point equals 0.01%, and yields and prices move in opposite directions.
Traders are eagerly awaiting more clarity on Wednesday, when many of Trump's reciprocal duties are set to come into effect.
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Investors hope that once the tariffs are implemented, some of the ambiguity surrounding U.S. trade policy could ease. However, the measures could be broader than anticipated. President Donald Trump said this week that U.S. reciprocal tariffs would apply to virtually all countries.
"Some on Wall Street are already talking about how '2 April' may very well be lighter-than-feared, producing a snap-back rally in risk assets," said José Torres, senior economist at Interactive Brokers. "But others worry that this economy can't handle a stress test of this magnitude and point to households increasingly unable to sustain expenditure patterns in light of mounting headwinds," he wrote in a note.
Traders got some sour economic news on Tuesday that sent yields lower. The ISM manufacturing index for March came in at 49 for the month, slightly below the 49.5 estimate from economists polled by Dow Jones. Job openings for February also missed forecasts, the Bureau of Labor Statistics said on Tuesday. Both reports added to a lingering concern that the economy could be meaningfully slowing.
