The 10-year Treasury yield was relatively unchanged Tuesday after the the prices portion of a key service sector survey came in stronger than expected and as investors weighed developments tied to President Donald Trump’s tariff policy.
The benchmark 10-year note yield was up less than 1 basis point at 4.20%, while the 2-year Treasury note yield climbed more than 3 basis points to 3.716%. The 30-year bond was more than 2 basis points lower at 4.771%.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
The ISM non-manufacturing purchasing managers’ index fell to 50.1 in July, below the 51.2 that had been seen by economists polled by Dow Jones ahead of the survey and below the 50.8 reading in June.
Notably, the prices index within the service survey showed a rise of 2.4 points to 69.9. New export orders fell 3.2 points to 47.9, imports tumbled 5.8 points to 45.9 and the employment index slipped further into a contraction, falling 0.8 point to 46.4.
Meanwhile, Trump told CNBC Tuesday that he’s planning to announce a new tariff plan on semiconductors as early as next week. The president also said that pharmaceutical duties could eventually reach 250%.
Trump threatened Monday to “substantially” increase tariffs on goods imported from India, though he didn’t specify by how much. Last week, he floated a 25% levy and an additional “penalty” if India continues buying Russian oil.
India pushed back against criticism from the U.S. and European Union over its purchases of Russian oil, saying it was being unfairly “targeted” after Trump warned of sharply higher tariffs.
In a statement late Monday, India’s Foreign Ministry said it only began buying oil from Russia after “traditional supplies” were redirected to Europe in the wake of the 2022 Russia-Ukraine war.
“It is revealing that the very nations criticizing India are themselves indulging in trade with Russia. Unlike our case, such trade is not even a vital national compulsion [for them],” the ministry added, taking aim at the EU and U.S.
— With additional reporting by CNBC’s Jeff Cox