The Japanese yen rose and 10-year Treasury yields fell on Tuesday as investors fled to safer assets amid worries the U.S.-China trade conflict would get worse, days after both sides announced new tariffs.
On Friday, China said it would increase tariffs on $75 billion worth of American goods. The United States retaliated by saying it would raise existing tariffs on $250 billion worth of Chinese goods to 30% from 25% on Oct. 1.
U.S. President Donald Trump also said he would tax another $300 billion worth of Chinese imports 15%, rather than the 10% he had planned. Those levies go into effect on Sept. 1.
The Japanese currency was last up by 0.5% at 105.63 against the dollar. That wasn't as strong as Monday's gain, when it reached a three-year high, excluding the January flash crash. The yen has gained 3.6% against the dollars as the trade war drove traders to safe-haven assets.
Ten-year U.S. Treasury yields fell to 1.5097%, keeping the yield curve inverted as two-year yields traded at 1.5264%, a sign of an impending recession.
Source : Reuters