U.S. Treasury yields rose on Tuesday as investors monitored the latest developments regarding President Trump's tariff policy after a Supreme Court reversal, while also preparing for his annual State of the Union address scheduled for the same evening.
Trump is scheduled to address Congress on Tuesday, his second speech since returning to the White House 13 months ago.
US Treasury yields saw only slight movements, with 10-year yields rising by one basis point to 4.042%, while 30-year yields rose by less than one basis point to 4.704%.
Two-year bonds also added about two basis points to reach 3.457%. It should be noted that each basis point represents 0.01%, and prices move inversely to yields.
These moves came after last week’s Supreme Court decision, by a 6-3 vote, that struck down a large portion of Trump’s “reciprocal” tariffs, ruling that he had unlawfully relied on the International Emergency Economic Powers Act to implement them.
The following day, the president announced an increase in global tariffs from 10% to 15% with immediate effect, warning of further tariffs on countries whose officials seek to take advantage of the court ruling.
Trump added on Monday that any country that tries to “play by the rules” after the court ruling “will face much higher tariffs, and worse than what was recently agreed upon,” which increased caution among investors and affected the overall mood of the markets.
The geopolitical aspect also remained a key focus, with continued speculation about a possible US strike against Iran, prompting investors to move towards safe-haven assets such as US Treasury bonds, according to a note issued by Deutsche Bank on Tuesday.
This trend has helped to support demand for bonds and slightly raise yields amid anticipation and anxiety in the markets.
