U.S. government debt yields rose across the board Thursday after the China's Ministry of Commerce said that the leaders of the U.S. and Chinese trade delegations held a phone call and agreed to meet next month in Washington, D.C.
Though a formal trade agreement remains a distant prospect, Wall Street welcomed the news of the meeting as one of the first positive developments between the world's two largest economies over the past several weeks.
The yield on the benchmark 10-year Treasury note rose 11 basis points to 1.562%, while the yield on the 30-year Treasury bond jumped a similar 9 basis points to 2.055%. The 2-year note yield traded higher at 1.47%; yields rise as prices fall.
Thursday's pivot away from Treasurys came after China's Commerce Minister said Liu He, China's top negotiator on trade, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
Beijing said the two sides agreed to hold another round of trade negotiations next month while consultations and other strategists will convene in September in preparation for the meeting, according to a translation of the Chinese Commerce Ministry statement.
The U.S. and China have in recent months escalated their trade war with new tariffs and barbed rhetoric, weighing on investor sentiment and fueling a bid for safer assets like U.S. debt. U.S. tariffs on $112 billion of Chinese imports took effect earlier this month, with additional duties set for later this year.
Company payrolls surged by 195,000 in August, according to a report from ADP and Moody's Analytics, topping economist expectations of a gain of just 140,000. August's growth was the best since the 255,000 added in April.