US government debt prices edged lower on Tuesday as concerns over US-China trade war and its possible impact on the economy continued to weigh on financial markets. The yield on the 10-year US Treasury note rose to 2.1020% while the 3-year Treasury note’s yield went up to 2.5577%.
Furthermore, recent comments from Fed officials have been signalling a possible rate cut by the central bank in the near future. Previously, economists were expecting Fed to raise interest rates in 2019, and as a result, were anticipating the 10-year Treasury note’s yield to climb to more than 3%.
Investors are also adopting a cautious approach ahead of the release of US factory orders data for April 2019.