Treasury yields rise after Trump says he will meet with Chinese vice premier

U.S. government debt prices fell on Thursday after President Donald Trump said he would meet with Chinese Vice Premier Liu He on Friday.

The 10-year Treasury yield rose 6 basis points to around 1.65% while the 2-year yield climbed 5 basis points to 1.512%. The 30-year bond yield advanced to 2.15%. Yields move inversely to prices. 

Trump tweeted: "Big day of negotiations with China. They want to make a deal, but do I? I meet with the Vice Premier tomorrow at The White House."


The tweet raised hopes for progress on the U.S.-China trade front as high-level talks kicked off on Thursday.


A report overnight suggested talks could have been cut short. The South China Morning Post said Liu could leave Washington on Thursday, rather than Friday as initially scheduled.

"We are not aware of a change in the Vice Premier's travel plans at this time," a White House spokesperson told CNBC in response to the South China Morning Post's report. A senior administration official told CNBC's Kayla Tausche that Liu is still scheduled to depart Friday evening, and dinner is on for the delegation Thursday evening in DC.

Yields rose on Thursday despite weaker-than-expected inflation data. The consumer price index was flat in September on a month-over month basis. Economists polled by Reuters expected a gain of 0.1%.

— CNBC's Fred Imbert & John Melloy contributed to this report.