U.S. Treasury yields inched lower as investors weighed the state of the U.S. economy amid a tame inflation report and the U.S.-China trade agreement.

The U.S.’s gaping budget hole means Treasury yields will trend higher, Bank of America said. Yields edged higher.

Treasury yields climbed on Wednesday — sending the two-year note’s to the highest level since March — as traders further pared wagers on more than one Federal Reserve interest-rate cut by year-end.

U.S. Treasury yields moved higher on Monday as the U.S. and China successfully negotiated a trade deal to slash tariffs on each other’s goods.

The chart below overlays the daily performance of several Treasury bonds, starting from the pre-recession equity market peaks, along with the Federal Funds Rate (FFR) since 2007. This next table shows the highs and lows of yields and the Federal Funds Rate ...

The Treasury Secretary pointed to two-year Treasury yields as a signal that the market is ready for interest rate cuts from the Fed.

The Dow fell, while the S&P 500 and Nasdaq rose Tuesday as the stock market reacted to the latest CPI inflation report. AI stocks rallied.

U.S. Treasury yields were little changed on Friday as investors remained optimistic about the U.S. striking more trade deals on tariffs with trade partners.