Following President Trump's announcement of an immediate 90-day suspension of increased reciprocal tariffs for numerous trade partners, the yield on the US 10-year Treasury note receded from its session peak to trade around 4.4%. Concurrently, tariffs on Chinese imports were elevated to 125% from a previous 104%. In the backdrop, the US Treasury successfully auctioned $39 billion in 10-year notes, with the demand demonstrating robustness, providing some respite to the market. Prior to this, the benchmark yield had surged by 20 basis points, reaching 4.5%, amidst escalating investor apprehension due to Trump's tariff declaration. The situation was further exacerbated by China's retaliatory measure of imposing an additional 50% tariff, and the EU's sanctions on €21 billion worth of US goods. Indications of foreign selling and a general pivot towards cash suggested investors were liquidating their positions, heightening concerns that US Treasuries might be losing their traditional safe-haven status.