US 10-year treasury yield clocks a four-month high

• Treasury yields rise to four-month highs despite escalating trade tensions. 
• China's Treasury holdings fell to six-month lows. 

The yield on the 10-year treasury note jumped to four-month highs on Tuesday amid escalating US-China trade war.

The benchmark yield rose to 3.06 percent yesterday - the highest level since May 23 - and was last seen at 3.045 percent. More importantly, the yields rose even though the United States and China slapped a new round of tariffs on each other.

The Trump administration on Monday announced a 10 percent tariff on $200 billion worth of Chinese imports. Meanwhile, in retaliation, China has announced new tariffs on US imports worth $60 billion.

Meanwhile, the official data showed that China's holdings of US Treasuries dropped to a six month low of $1.171 in July, from $1.178 trillion in June.