Yields fall as Trump announces reciprocal tariffs

BY Reuters | TREASURY | 04/02/25 04:54 PM EDT

April 2 (Reuters) - U.S. Treasury yields fell on Wednesday and two-year yields were the lowest in three weeks after U.S. President Donald Trump said he is imposing reciprocal tariffs to match duties put on U.S. goods by other countries.

The yield on benchmark U.S. 10-year notes was last down 2.7 basis points on the day at 4.129%. The 2-year note yield fell 0.9 basis points to 3.854%.

The yield curve measuring the gap between two-year and 10-year notes was last at 27.1 basis points. (Reporting By Karen Brettell)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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