- Investors are reacting to President Donald Trump's announcement on Wednesday of new 25% tariffs on all cars not made in the U.S., with exceptions for cars made with U.S. parts. This adds to concerns about how Trump's retaliatory tariffs might impact the slowing U.S. economy, which is facing a 12-year low in consumer confidence.
- However, Thursday’s jobless claims data provided some relief, showing little change in initial filings for unemployment insurance, with 224,000 claims for the week ending March 22. Investors are now looking to the upcoming personal consumption expenditures index, the Federal Reserve's preferred inflation gauge, set to be released on Friday.
Why it matters
The benchmark 10-year Treasury note yield rose more than two basis points to 4.365%, while the 2-year Treasury yield edged lower by one basis point to 3.996%. One basis point is equivalent to 0.01%, and yields and prices move in opposite directions.
