Bonds | Treasury Yields Report: Treasury yields fall as investors remain on edge about US-China trade

Yun Li, Spriha Srivastava

Chinese officials were troubled by Trump’s comment that there was no agreement on phasing out tariffs, a government source told CNBC. China has pushed for a removal of the additional duties imposed on each other’s products in different phases, as part of the deal.
However, Trump said a week ago he has not agreed to scrap tariffs on Chinese goods, conflicting the signal from China and dampening hopes about a coming resolution to a jarring trade conflict.
Chinese state media said the two sides had “constructive” trade talks on Saturday, noting U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin talked with Chinese Vice Premier Liu He about the core issues for a phase one trade agreement.
Meanwhile, Chinese officials have surprised markets with the announcement of a cut to a key interest rate for the first time since 2015. The move has sparked speculation of further stimulus measures in China.
Trump and Federal Reserve Chairman Jerome Powell, who have been at odds over the direction of monetary policy, met Monday to discuss a variety of economic issues, according to a statement from the central bank.
On the auction front, the Treasury is set to auction a three-month and a six-month bill on Monday.

CNBC’s Silvia Amaro contributed to this report.