Bonds

US Treasurys flat as investors monitor ongoing global trade concerns

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U.S. government debt prices were little changed on Wednesday amid heightened global trade fears.

The yield on the benchmark 10-year Treasury note fell slightly to 2.835 percent, while the yield on the 30-year Treasury bond slipped to 2.958 percent. Bond yields move inversely to prices.

Treasurys

Market focus is largely attuned to concerns over global trade, a week before initial U.S. and Chinese tariffs are due to take effect. President Donald Trump’s administration is set to activate tariffs on Chinese goods worth around $34 billion on July 6, which is then widely expected to trigger a tit-for-tat response from Beijing.

Treasury yields have been mostly rangebound this week as investors digest mixed messages on trade.

On Wednesday, a Trump administration official stated that the government would to take care of matters concerning foreign purchase of domestic technologies that are deemed sensitive. Reports earlier in the week suggested that the White House would more actively restrict investment in technology firms by Chinese companies.

"There have been conflicting messages from global financial markets, underscoring the uncertain investment landscape," strategists at MRB Research said in a note. "Still, the risk-off phase is likely to persist until the heated trade rhetoric eases and protectionist actions stop."

Treasury investors also looked ahead to next week, as the Labor Department gets set to release the latest jobs report.

Personal income rose 0.4 percent in May, in line with expectations. Other data scheduled for release Friday include a final reading of consumer sentiment data for June due later in the session.