A portion of the so-called yield curve further inverted as 3-month Treasury bills last yielded 2.351%, well above the 10-year rate. A yield curve inversion is seen by traders as a potential sign that a recession is in the horizon.
The 10-year Treasury note yield fell to its lowest level since September 2017 and traded around 2.22%.
Bank shares fell along with yields. Citigroup, Bank of America and J.P. Morgan Chase all dropped more than 1%.
Washington and Beijing have imposed tariffs on billions of dollars’ worth of one another’s goods since the start of 2018, battering financial markets and souring business and consumer sentiment.