FX.co ★ Treasury Yields Rise Further

On Wednesday, U.S. Treasury yields experienced a significant increase, with the 10-year yield rising approximately 15 basis points to reach around 4.4%. Concurrently, the 30-year yield edged towards 4.9%, marking its highest level in nearly three months. This surge in government bond sell-offs indicates growing unease among investors following President Trump's imposition of reciprocal tariffs, which includes a cumulative 104% duty on Chinese imports. In retaliation, China introduced an additional 50% tariff on American goods, pushing their total levy to 84%. This renewed escalation in tariffs has heightened worries about a potential U.S. recession and ongoing inflation, which may limit the Federal Reserve's capacity to further relax monetary policy. Adding to the downward pressure on Treasuries were reports of foreign selling and indications of a broader shift towards cash, suggesting some investors are liquidating their positions amid heightened uncertainty—fueling concerns that U.S. government bonds may be losing their conventional attractiveness as a safe-haven asset.