U.S. Treasurys pared back earlier gains on Tuesday as investors weighed the U.S. economic growth outlook following a cut to estimates from the OECD. Investors also continued to monitor rising trade tensions with China as well as the European Union.
The 10-year Treasury yield was just more than a basis point lower at 4.45% after dropping more than 4 basis points earlier in the day. Last month, the benchmark yield rose above 4.50%. The 30-year Treasury yield dipped less than 2 basis points to 4.976%.
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WATCH HEREOne basis point is equivalent to 0.01% and yields and prices move in opposite directions.
The Organization for Economic Co-operation and Development downgraded the U.S.' growth outlook to just 1.6% this year, and 1.5% in 2026. The OECD previously expected a 2.2% expansion in 2025.
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SIGN UP It also downgraded the outlook for the global economy, citing tariffs and policy uncertainty.
"The global outlook is becoming increasingly challenging," the report said. "Substantial increases in barriers to trade, tighter financial conditions, weaker business and consumer confidence and heightened policy uncertainty will all have marked adverse effects on growth prospects if they persist."
Trade relations between China and the U.S. are on the brink of deteriorating as Beijing countered accusations from the U.S. on Monday that it had violated a temporary trade agreement between the two countries. Beijing also accused the U.S. of breaking some of the terms of the deal.
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Meanwhile, the European Union hit back at Trump's plans to double steel tariffs to 50%, saying it "undermines" negotiations between the two countries. An EU spokesperson said that the bloc was "prepared to impose countermeasures."
