The yield on the 10-year US Treasury note fell to 4.03% on Monday, its lowest level in nearly three months, as renewed fears of AI-driven job and sector displacement and heightened uncertainty over White House trade policy prompted a flight to safer assets. Sharp selloffs in software services and payments stocks underscored mounting concern that rapid advances in AI could disrupt key industries in unpredictable ways, encouraging investors to rotate into Treasuries.
These moves were exacerbated by reports that major European and Asian economies are considering suspending implementation of trade agreements previously concluded with the United States, after the Presidential Administration sought to reimpose tariffs under alternative “economic emergency” balance-of-payments frameworks. The effort followed the Supreme Court’s decision on Friday to strike down IEEPA-based tariffs. Even so, shorter-dated Treasury yields declined by less, as markets pared back expectations for imminent interest rate cuts by the Federal Reserve.
