10-year US Treasury bond yield surges to multi-month highs on US-China trade optimism

With the latest headlines surrounding the United States (US)-China trade dispute providing a strong boost to the market sentiment, the safe-haven Treasury bonds struggled to find demand on Thursday and the yield on the 10-year reference jumped to its highest level since early August at 1.950% by adding more than 6.5% on a daily basis.

Earlier in the day, the Chinese Commerce Ministry announced that the US and China have agreed to cancel existing import tariffs in different phases, noting that sides must cancel existing tariffs at the same time and in the same proportion to end the dispute.

Moreover, citing a source with knowledge of the matter, Bloomberg reported that the US will be rolling back tariffs as part of the phase-one trade deal with China to confirm the earlier reports.

Reflecting the upbeat mood, Wall Street's main indexes are posting decisive gains with the Dow Jones Industrial Average and the Nasdaq Composite both adding more than 0.8% at the time of press.