Trump returns to the White House

U.S. Treasury yields were lower on Tuesday as investors digested President Donald Trump’s return to the White House and a series of new executive orders.

At 6:28 a.m. ET, the Yield on 10-year government bonds was more than 2 basis points lower at 4.587%. The Yield on 2-year government bonds was down slightly at 4.27%.

One basis point is equal to 0.01% and yields and prices move in opposite directions.

Bond markets were closed Monday for Martin Luther King Jr. Day. Investors watched closely as Trump was sworn in as the 47th President of the United States on Monday.

After his inauguration in the capital, Trump signed over 40 executive orders at the Capital One Arena in front of 20,000 supporters.

Trump also weighed in on the tariffs as he signed executive orders, saying he was considering imposing 25% tariffs against Mexico and Canada starting in February over their border policies. He also mentioned China, saying the country would face increased tariffs if it doesn’t agree to a TikTok deal.

However, Trump said he was not yet ready to impose universal tariffs. Investors will be eager to see whether Trump implements some of the pro-business measures he promised during his campaign.

Some housing data will be released this week. The MBA 30-year mortgage rate is due on Wednesday and weekly jobless claims are due out on Thursday.

On Friday, investors will await the S&P Global Composite PMI flash and the release of existing home sales data.