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US Treasury yields hold steady amid trade worries

U.S. government debt prices were flat on Monday as trade worries resurface and rattle investors.

The yield on the benchmark 10-year Treasury note traded at 2.93 percent as of 2:53 p.m. ET, while the yield on the 30-year Treasury bond held at 3.058 percent. Bond yields move inversely to prices.

U.S. Markets Overview: Treasurys chart

On Friday, President Donald Trump announced that the U.S. would inflict tariffs that would impact up to $50 billion worth of Chinese goods. According to Washington, the action comes "in light of China's theft of intellectual property and technology and its other unfair trade practices."

Consequently, the move triggered China to retaliate, with Beijing announcing its own selection of duties on U.S. goods. The Chinese State Council's commission on tariffs and customs stated that a 25 percent tariff would occur in early July on $34 billion of U.S. products.

Markets have been on edge, with stocks in the Asia-Pacific region and Europe all trading deep in the red. U.S. stocks also fell.

Atlanta Fed President Raphael Bostic said the potential of a trade war is dampening the prospects for above-trend economic growth.

In prepared remarks, Bostic said: "I began the year with a decided upside tilt to my risk profile for growth, reflecting business optimism following the passage of tax reform. However, that optimism has almost completely faded among my contacts, replaced by concerns about trade policy and tariffs,"

His speech comes less than a week after the U.S. Federal Reserve decided to increase its short-term interest rate by a quarter percentage point, and indicated two more increases would likely occur by the end of 2018.

—CNBC's Jacob Pramuk and Evelyn Cheng contributed to this report