Trump, European Union trade optimism
A trader works on the floor of the New York Stock Exchange (NYSE) in New York, US, on Thursday, May 21, 2025.
Michael Nagle | Bloomberg | Getty Images
Treasury yields slipped on Tuesday as markets reopened after the holiday, buoyed by optimism surrounding U.S.-EU trade talks.
The 30-year Treasury yield was down 6 basis points at 4.978%. The 10-year Treasury shed 4 basis points to 4.469%. The 2-year yield was less than 1 basis point lower at 3.979%.
One basis point is equivalent to 0.01%, and yields move inversely to prices.
President Donald Trump announced over the weekend that he would postpone a planned 50% tariff on the European Union until July 9, following a request from European Commission President Ursula von der Leyen. The import duty was initially set to take effect on June 1.
“The EU and US share the world’s most consequential and close trade relationship,” Von der Leyen said in a post on X over the weekend. “To reach a good deal, we would need the time until July 9.” She added that the EU was “ready to advance talks swiftly and decisively.”
Tuesday’s bond market moves come on the heels of a volatile few days before Memorial Day. Last week saw a global bond rout sparked by renewed fiscal anxieties following Moody’s downgrade of U.S. credit rating and concerns surrounding Trump’s tax bill.
Investors are also looking toward the Federal Reserve’s minutes from its May 6-7 meeting, which will be published on Wednesday. Among the other data points due this week is April’s core personal consumption expenditures price on Friday.
