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US Treasury yields rebound after Trump jabs at Fed; Jackson Hole summit in focus

U.S. government debt yields rebounded on Tuesday a day after President Donald Trump criticized Federal Reserve Chairman Jerome Powell for the central bank's rate hikes.

The yield on the benchmark 10-year Treasury note was higher at around 2.848 percent at 1:03 p.m. ET, while the yield on the 30-year Treasury bond was in the black at 3.01 percent. Bond yields move inversely to prices.

U.S. Markets Overview: Treasurys chart

Investors remain cautious however, after a recent interview President Donald Trump had with Reuters. On Monday, the U.S. leader told the news agency that he wasn't expecting much progress from trade discussions with China, which are due to commence this week in Washington. This week's meeting comes as fresh tariffs from the States on $16 billion of Chinese goods are due to come into effect this week, with Beijing having imposed the same amount of retaliatory levies on the States.

Sticking with the same interview, Trump went onto deliver his thoughts about the U.S. central bank. During the conversation, the U.S. president revealed that he would continue to criticize the U.S. institution, if it persisted with raising interest rates. Trump added that the Fed should do "what's good for the country."

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The interview comes just days before the U.S. Federal Reserve gather in Jackson Hole, Wyoming for the annual economic symposium. This year, Fed Chair Jerome Powell is due to deliver a speech on Friday, and the summit will be themed around the idea of changing market structure and the implications for monetary policy going forward.

The minutes from the latest Fed meeting, which took place at the turn of this month, will be released Wednesday. Investors will be poring over the minutes for any signs as to where the economy and monetary policy could be headed in the future.

On the trade front, markets have recently been on edge following reports that a nine-member delegation from Beijing would hold meetings with officials from the States later on this week. The news, which was first reported by the Wall Street Journal, went onto add that this could lead to a potential meeting between the presidents of China and the U.S., later on in November this year.