Investors largely expected the FOMC to cut rates by a quarter point.The Fedread more
U.S. government debt yields rose Tuesday as traders continued to sell Treasurys in September following a strong August bid and amid positive developments in the U.S.-China trade war.
Wall Street's volatile summer trading action has in large part been thanks to swings in U.S.-China trade relations.
Trump abruptly ending a cease-fire with China on Aug. 1 by announcing 10% tariffs on $300 billion worth of Chinese goods, some of which took effect Sept. 1. The president delayed the introduction of some of the duties to mitigate the shopping season.
China responded in kind later in August, introducing , effective Sept. 1 and Dec. 15, the two dates when Trump's tariffs take effect on Beijing's goods. It also confirmed it is in light of the Trump administration's new tariffs.
The latest developments, however, have taken an upbeat tone and eased financial markets, which sold off in August as trade-related angst sent the S&P 500 down 1.8%.
Treasury Secretary said Monday that the U.S. and China ahead of the next round of trade talks, set to resume at high levels in October.
The U.S. Treasury Department auctioned $38 billion in 3-year notes on Tuesday at a high yield of 1.573%. The bid-to-cover ratio, an indicator of demand, was 2.42. Indirect bidders, which include major central banks, were awarded 46.2%. Direct bidders, which includes domestic money managers, bought 16.6%.