Short-Term Treasuries Dip Amid Progress in US-China Trade Talks

Group 1 - Optimism regarding a potential US-China trade deal is leading investors to sell Treasuries, resulting in decreased demand for safe-haven assets [1][3] - Yields on 10-year US government bonds increased by four basis points to 4.04%, the highest level in over a week, following agreements on tariffs and export controls between the US and China [2] - The selloff in Treasuries is occurring at a critical time as markets anticipate central bank policy decisions and the outcome of a meeting between President Trump and President Xi Jinping [3] Group 2 - Investor sentiment will be further assessed through upcoming two- and five-year Treasury sales [4] - Concerns over inflation risks are growing as tariffs begin to impact the economy, despite soft CPI data and worries in sectors like housing and private credit [4] - A proxy for term premium on US 10-year debt rose by one basis point to 66 basis points, indicating a slight increase in perceived future risk [5]