Treasury yields inch higher after US and Canada secure new trade deal

Key Points
  • As a new quarter for trading kicks off, news emerged that Canada and the U.S. had secured a trade deal to replace the current North American Free Trade Agreement (NAFTA).

U.S. government debt yields rose on Monday after the United States and Canada reached a last-minute deal on trade late Sunday evening.

The yield on the benchmark 10-year Treasury note was higher at around 3.085 percent at 4:26 p.m. ET, while the yield on the 30-year Treasury bond was up at 3.236 percent. Bond yields move inversely to prices.


Canada and the U.S. secured a trade deal to replace the current North American Free Trade Agreement (NAFTA). The accord is expected to be named the United States-Mexico-Canada Agreement, or "USMCA" for short, according to a senior official from the U.S. administration.

The agreement is expected to deliver more market access to dairy farmers in the U.S., while Canada has agreed to a negotiation that effectively caps automobile exports, to the States. Both nations, along with Mexico – which agreed to a deal earlier this year – are expected to sign the agreement by the end of next month. It would then be passed to Congress for submission.

On Monday, Boston Fed President Eric Rosengren attended the NABE 60th Annual Meeting in Boston, Massachusetts while Atlanta Fed President Raphael Bostic was at the Inclusive Economic Development Council Conference in Atlanta, Georgia.

These speeches come less than a week after the Federal Open Market Committee decided to raise interest rates by a quarter point.

Elsewhere, investors will be keeping an eye on news surrounding the Supreme Court nominee, Brett Kavanaugh, as the nominee's future at the federal courthouse is called into question, amid allegations of sexual misconduct.