FX.co ★ US 10-Year Treasury Yield Tops 4.5%

On Friday, the yield on the US 10-year Treasury note experienced a significant increase, climbing approximately 10 basis points to surpass 4.5%, marking its highest level since mid-February. This week, yields are set to rise to more than 50 basis points, representing the most pronounced weekly selloff in the US bond market since September 2019. The intensifying selloff in Treasuries indicates a growing shift away from US assets, reflecting a possible decline in confidence in the US government's debt's once-reliable safe-haven status. This turmoil occurs amid escalating trade tensions and growing concerns about the US economic outlook, accompanied by fears of a potential recession and elevated inflation levels. In a retaliatory move, the Chinese finance ministry announced plans to increase tariffs on US imports to 125%, responding to Washington's tariffs reaching as high as 145% on Chinese goods. Additionally, recent data paints a bleak picture: the University of Michigan's consumer sentiment index plummeted in April to its lowest since 2022, while one-year inflation expectations have surged to levels unseen since 1981.