U.S. Treasury yields moved slightly higher on Thursday as investor sentiment was buoyed by a federal trade court blocking President Donald Trump’s reciprocal tariffs.
At 5:55 a.m. ET, the 30-year Treasury yield rose nearly 5 basis points to 5%. The 10-year Treasury yield was 5 basis points higher at 4.537%. The 2-year yield was up 4 basis points reaching 4.037%.
One basis point is equivalent to 0.01%, and yields move inversely to prices.
The U.S. Court of International Trade invalidated Trump’s universal “reciprocal tariffs” imposed on international trade partners in early April, on Wednesday, and ordered a permanent stop to the duties in this case as well as future modifications.
The court said that Trump invoked the International Emergency Economic Powers Act to impose tariffs.
“The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs,” it said.
The Trump administration has already appealed to the U.S. Court of Appeals for the Federal Circuit.
On the economic data front, investors will be awaiting the gross domestic product growth rate for fresh insights into the health of the U.S. economy. They are also looking ahead to the personal consumption expenditures index — the Fed’s favorite inflation gauge — which is set to be released on Friday morning.
