U.S. government debt yields rose Thursday amid reports the U.S. and China have begun outlining a deal to end their protracted trade war.
The 10-year Treasury yield has been locked in a range between 2.6 percent and 2.8 percent for the majority of 2019 as downturns in global growth and inflation expectations have reined in market bulls and fostered demand for government debt. Important to the muted global outlook is ongoing U.S.-China trade talks, which have pitted the world's two largest economies against each other through tariffs and other barbs.
That sentiment appeared to ebb Thursday amid reports that Washington and Beijing have begun drawing up memorandums of understanding over trade. Officials from both countries met for talks this week and higher-level discussions are set to be held on Thursday and Friday.
The U.S. and China are trying to resolve their differences over trade ahead of an early March deadline. However, speculation has risen that there may be an extension to that target, after President Donald Trump said it was not a "magical date."