The yield on the US 10-year Treasury note fell further to 4.06% on Friday, its lowest level in nearly three weeks, fully erasing the gains from earlier in the week amid growing concerns over a renewed US-China trade war. President Trump threatened a “massive increase in tariffs” on Chinese imports in response to Beijing’s plans to tighten export controls on rare earths, and also hinted he might cancel his upcoming meeting with President Xi Jinping, heightening geopolitical tensions. The remarks came after a series of measures from China earlier in the week, including new port fees on US ships and an antitrust investigation into Qualcomm. Meanwhile, the federal government shutdown entered its tenth day, further delaying the release of key economic data and likely postponing next week’s scheduled releases, including CPI. Investors continue to price in a 25-basis-point rate cut by the Fed later this month, with the probability of another move in December holding around 83%.