Market News

(Bloomberg) -- US Treasuries fell, a sign that investors are favoring riskier assets, after reports that the tariffs President Donald Trump is set to announce next month will be more targeted than he has indicated.

The yield on the 10-year note rose as much as four basis points to 4.29%. German bonds also fell modestly, with the equivalent rate climbing three basis points to 2.80%, snapping five straight days of gains.

The moves follow reports that Trump’s announcement of universal, reciprocal trade tariffs on April 2 — a date he’s referred to as “liberation day” for America — will be narrower than initially expected. That’s helping temper some of the market’s fears about the impact on global trade and growth.

“The latest news regarding reciprocal tariffs is mildly positive for risk sentiment at the start of this week,” said Kathleen Brooks, research director at XTB.

“Tariffs in Trump’s second term as President are still broader compared to his first term, and they continue to weigh on markets,” she added. “However, the selloff in US equities, particularly in big tech, could reverse if markets have overestimated the risk from tariffs on global trade.”

Trump Plans His Tariff ‘Liberation Day’ With More Targeted Push

US 10-year bond have traded in a fairly narrow range through March, after the yield retreated from the year’s high of about 4.80% in mid-January. Trump’s tariff and trade-war threats sparked fears of a recession, pushing investors out of stocks and into the safety of bonds.

The US Purchasing Managers’ Index will give a read on private business activity later Monday. In the euro area, the equivalent data showed activity is improving, albeit from a low base.

In Germany, activity grew at the quickest pace in 10 months on hopes that a massive increase in government spending will outweigh any hit from US tariffs. Still, the improvement was slightly less than analysts had anticipated, which saw bunds pare an earlier drop.