U.S. government debt yields slipped from earlier highs Tuesday after a report said that President Trump was convinced Gary Cohn — his chief economic adviser — would leave the administration if tariffs on steel and aluminum were implemented.
Yield had started the day higher after North Korea said it was open to talking with the United States regarding denuclearization. Investors also monitored the growing rift between President Trump and pro-trade Republicans over steel and aluminum imports.
The yield on the benchmark 10-year Treasury note was flat at 2.883 percent at 4:05 p.m. ET, while the yield on the 30-year Treasury bond was also little changed at 3.149 percent. Bond yields move inversely to prices.
Bloomberg reported Tuesday that Trump has said he believes Cohn will resign if the new tariffs are implemented, citing people familiar with the matter. Cohn, formerly president at Goldman Sachs, is seen by many on Wall Street as an invaluable advisor to the president on economic and market issues.
In geopolitics, North Korea told a South Korean delegation in Pyongyang that it was willing to talk with the United States about ceding nuclear weapons and normalizing relations, the head of the delegation, Chung Eui-yong, told a media briefing.
That North Korea appeared willing to try to improve relations with Washington sent U.S. debt yields to near multiyear highs as traders pivoted away from safe havens. Open dialogue would follow a year of heated rhetoric between the two nations, often blamed for spooking investors through summer and fall 2017.
North and South Korea will hold their first summit in more than a decade in late April.