The yield on the 10-year Treasury note fell Thursday to its lowest level since 2017 as Wall Street became more nervous that the U.S.-China trade war could drag on longer than expected.
At around 10 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was lower at around 2.331%, its lowest level since Dec. 7, 2017. The yield on the 30-year Treasury bond was also lower at around 2.764%, its lowest level since January 2018.
Yields extended their declines after financial data firm IHS Markit said the U.S. manufacturing Purchasing Managers Index fell to 50.6 in May, the lowest reading since September 2009.
“Growth of business activity slowed sharply in May as trade war worries and increased uncertainty dealt a further blow to order book growth and business confidence,” said Chris Williamson, Markit’s chief business economist.
The latest fight between Washington and Beijing worsened after U.K.-based semiconductor designer Arm Holdings said it suspended business with Huawei to comply with the U.S. blacklisting of the telecom company. Panasonic, Vodafone and BT Group have also adjusted their businesses to comply with U.S. stipulations.