U.S. Treasury yields rose sharply Tuesday after the United States and China each slapped a new round of tariffs on each other.

President Donald Trump's administration said Monday announced it will impose 10 percent tariffs on about $200 billion of imports from China effective Sept. 24.

China, in turn, said it will institute new tariffs on U.S. goods worth $60 billion on Sept. 24. according to a Reuters report.

The yield on the benchmark 10-year Treasury note rose 5 basis points to 3.055 percent at 4:29 p.m. ET, its highest level since May 23. The yield on the 30-year Treasury bond picked up 6 basis points to climb to 3.2 percent. Bond yields move inversely to prices.

China's holdings of U.S. Treasury bills, notes and bonds dropped to a six month low of $1.171 in July, from $1.178 trillion in June. China is the biggest holder of U.S. Treasurys, followed by Japan.

Japan's holdings rose to 1.04 trillion from $1.03 trillion in June.

Treasury selling is often viewed as a way Beijing could retaliate against the Washington, but bond strategists are skeptical China is really trying to send a message.