Top Stories
Top Stories

US Treasury yields rise after consumer confidence hits 18-year high

U.S. government debt yields rose on Tuesday morning following a economic report said that U.S. consumer confidence rose to an 18-year high in October.

The Conference Board said its consumer confidence index rose to a print of 137.9 this month, driven primarily by a hot labor market and expectations that economic growth will remain solid in the near term. The reading is the highest level since September 2000; economists polled by Reuters had expected the index to slip to 136.

U.S. Markets Overview: Treasurys chart

At around 10:41 a.m. ET, the yield on the benchmark 10-year Treasury note, which moves inversely to price, was higher at around 3.098 percent, while the yield on the 30-year Treasury bond was also higher at 3.35 percent.

Market sentiment has been hit by a range of negative factors in recent weeks, though investors appear to be particularly concerned about an intensifying U.S.-China trade war at present.

It comes after a Bloomberg report on Monday suggested the U.S. could be preparing to announce tariffs on all remaining Chinese imports by early December if talks between presidents Donald Trump and Xi Jinping breakdown next month.

The White House has raised the possibility of such a move previously, but this is the first time a timeline has been reported.

In oil markets, crude futures slipped amid concerns an escalating U.S.-China trade war could soon dent economic growth. Brent crude traded at around $76.91 a barrel on Tuesday morning, down 0.6 percent, while U.S. crude was around $66.68 a barrel, around 0.5 percent lower.

WATCH: Why you shouldn't panic when stocks are getting slammed

Why you shouldn't panic when stocks are getting slammed