Treasury yields edge higher as markets weigh Trump tariff escalation

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Feb. 23, 2026.

Brendan Mcdermid | Reuters

U.S. Treasury yields ticked up Tuesday as investors parsed the latest twists in President Donald Trump’s tariff policy following a Supreme Court setback, while also bracing for his State of the Union address later in the day.

Trump is set to address Congress Tuesday evening for the customary State of the Union speech, his second since returning to the White House 13 months ago.

The 10-year Treasury yield was up around 1 basis point at 4.042%. The 30-year Treasury bond yield was less than 1 basis point higher at 4.704%. The 2-year Treasury note added almost 2 basis points to 3.457%.

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

Last Friday, the Supreme Court struck down a significant share of Trump’s “reciprocal” tariffs in a 6-3 decision, ruling that he had improperly relied on the International Emergency Economic Powers Act (IEEPA) to implement them. A day later, Trump responded by announcing an increase in global tariffs to 15% from 10%, saying the new rate would take effect immediately and warning that further levies were on the way.

On Monday, he added that countries seeking to “play games” after the court’s decision “will be met with a much higher Tariff, and worse, than that which they just recently agreed to,” adding to the risk-off tone in markets.

Geopolitics also remained central as speculation continued to climb following a potential U.S. strike on Iran, with the risk-off mood giving a boost to Treasurys amid a safe haven push, Deutsche bank wrote in a note on Tuesday.