U.S. government debt prices fell Thursday ahead of a crucial meeting between the United States and China.
Market sentiment is largely driven by expectations that the United States and China will pause their trade war. The leaders of both countries are meeting later this week, on the sidelines of a G-20 summit in Japan.
President Trump said Wednesday that the meeting could lead to a trade deal but warned that he was prepared to impose tariffs on virtually all remaining Chinese imports if talks failed once again.
The South China Morning Post, citing unnamed sources, reported overnight that officials from Washington and Beijing had tentatively agreed to resume talks aimed at resolving the dispute.
An agreement between Trump and Xi at the G-20 summit in Japan could avert the next round of tariffs on additional $300 billion worth of Chinese imports.