August 26, 2019 / 6:32 AM / 2 months ago

U.S. Treasury yields tumble to new lows on trade war jitters

LONDON, Aug 26 (Reuters) - U.S. Treasury yields tumbled to multi-year lows on Monday, as the latest escalation in a U.S.-China trade war hit confidence in the global economy and boosted demand for safe-haven bonds.

On Friday, U.S. President Donald Trump announced an additional duty on some $550 billion of targeted Chinese goods, hours after China unveiled retaliatory tariffs on $75 billion worth of U.S. goods.

The U.S. 10-year Treasury yield fell to its lowest since mid-2016 at 1.443% and was last down 7 basis points on the day.

U.S. 2-year Treasury yield hit its lowest since September 2017 at 1.449% and was down 8 bps on the day. The U.S. 2-year/10.year yield curve remained inverted .

Trump wishes he had raised tariffs on Chinese goods even higher last week, the White House said on Sunday, even as Trump signalled he did not plan to follow through with a demand that U.S. firms find ways to close operations in China.

U.S. stock futures pointed to a weak open for Wall Street shares, while world stocks tumbled. (Reporting by Dhara Ranasinghe; Editing by Thyagaraju Adinarayan)

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