U.S. Treasury yields moved lower on Tuesday as the OECD slashed the U.S.’ growth outlook in light of tariff uncertainty and continued to monitor rising trade tensions with China as well as the European Union.
At 4:18 a.m. ET, the 10-year Treasury yield was over 5 basis points lower to 4.41%. The 2-year yield was more than 2 basis lower, trading at 3.916%. The 30-year Treasury yield was more than 5 basis points lower at 4.937%.
One basis point is equivalent to 0.01% and yields and prices move in opposite directions.
The Organization for Economic Co-operation and Development downgraded the U.S.’ growth outlook to just 1.6% this year, and 1.5% in 2026. The OECD previously expected a 2.2% expansion in 2025.
It also downgraded the outlook for the global economy, citing tariffs and policy uncertainty.
“The global outlook is becoming increasingly challenging,” the report said. “Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist.”
Trade relations between China and the U.S. are on the brink of deteriorating as Beijing countered accusations from the United States on Monday that it had violated a temporary trade agreement between the two countries. Beijing also accused the U.S. of breaking some of the terms of the deal.
Meanwhile, the European Union hit back at Trump’s plans to double steel tariffs to 50%, saying it “undermines” negotiations between the two countries. An EU spokesperson said that the bloc was “prepared to impose countermeasures.”
This morning, investors will be keeping an eye out for data on April’s job openings, as well as durable goods and factory orders.
