Treasurys

The rally left yields lower by at least three basis points, with short maturities — more sensitive to Fed policy changes — falling the most.

The market retraced an opening selloff, with longer-dated benchmarks outperforming the front end.

The economist, who runs Roubini Macro Associates, is positioning for a curve steepener, a popular Treasuries trade where the gap between long- and short-dated yields widens.

Tuesday's declines lifted yields by one to four basis points across maturities after Trump said he'd impose additional 10% tariffs on goods from China and 25% tariffs on all products from Mexico and Canada.

Donald Trump's presidential victory, stubbornly elevated inflation and a steady drumbeat of strong economic data have pushed 10-year Treasury yields up sharply since mid-September.

Yields on 30-year bonds rose as much as 6 basis points to 4.68%, a level last seen at the end of May.

The benchmark 10-year Treasury yield topped 4.5% for the first time since May after the release of retail sales data including hefty upward revisions.

Treasury yields rose the day after President-elect Donald Trump was picked. The short-term result: It's harder for commercial real estate lenders and borrowers to find common ground.

Two-year yields — more closely tied to the Fed's decisions than longer-maturity debt — reached the highest level since July, and three- to 30-year yields rose at least 10 basis points.

So-called Trump trades seesawed as investors sought hedges before election day, only to pile back in as the results became clear.