Investors weigh Trump tariffs on global partners

U.S. Treasury yields were mixed on Monday as investors weighed U.S. President Donald Trump’s new tariffs on goods from key trade partners and their effect on the economy.

The 10-year Treasury yield was down 3 basis points at 4.535%, while the 2-year Treasury yield was up 2 basis points at 4.255%.

One basis point is equal to 0.01%, and yields and prices move in opposite directions.

Investors are weighing the effect of tariffs on trade partners, with Trump signing an executive order on Saturday imposing 25% tariffs on imports from Mexico and Canada and a 10% duty on China. The U.S. does roughly $1.6 trillion in business with the three countries.

On Monday morning, Mexico President Claudia Sheinbaum said Trump’s tariffs against the country would be paused for one month as it sends 10,000 soldiers to its northern border to stop drug trafficking.

Canada, meanwhile, has responded by threatening its own tariffs on the U.S., while Mexico is looking to impose levies on U.S. goods, and the Chinese government is filing a lawsuit with the World Trade Organization.

Investors can also expect a slew of manufacturing and jobs data through the week.

On Tuesday, the Job Openings and Labor Turnover Survey, referring to all open positions on the last business day of the month, will be released. Investors will also monitor speeches from Federal Reserve Bank of Atlanta President Raphael Bostic and Federal Reserve Bank of San Francisco President Mary Daly.

The January nonfarm payrolls report will be out on Friday and will provide clarity about the employment picture for 2025. Economists polled by Dow Jones forecast that 175,000 jobs were added last month, while the unemployment rate is predicted to have remained unchanged at 4.1%.