Treasury Yields Tumble As Pence Warns US "Can More Than Double" Tariffs On China

Speaking at a press conference after meeting Canadian Prime Minister Justin Trudeau, US VP Mike Pence warned China that US "could more than double tariffs if needed."

His words sent stocks lower modestly but tumbled yields back to yesterday's lows...

 

And crashed the yield curve to new cycle lows...

 

Additionally, Pence is expected to stir things even further, as CNBC reports that Pence is planning a speech around the 30th anniversary of the Tiananmen Square massacre, according to two sources familiar with the matter.

The remarks are expected to be a censure of China’s religious freedom and human rights record from one of the Trump administration’s highest ranking China hawks. They are set to come amid rising trade tensions between the world’s two largest economies.

A White House official confirmed a Pence speech is in the works – potentially in mid-June, following the anniversary – but declined to comment on its contents.