Treasuries Climb After Trump Threatens Higher Tariffs on China

Treasuries rallied on Friday, pushing yields to the lowest in weeks, after US President Donald Trump threatened “a massive increase” in tariffs on Chinese imports, sparking declines in stocks and some commodities.

Yields across maturities fell at least seven basis points to the lowest levels since mid-September after Trump’s comment in a social-media post. The five-year note’s fell 10 basis points, its biggest drop in more than a month. The rates were already several basis points lower on the day as investors reacted to evidence the US government shutdown may be curtailing economic activity.