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US government debt sold off sharply on Monday as hedge funds cut back on risk in their strategies and investors continued shifting into cash during a third day of acute tumult on Wall Street.
The benchmark 10-year Treasury yield jumped 0.19 percentage points on Monday to 4.18 per cent, the biggest daily rise since September 2022, according to Bloomberg data. The 30-year yield jumped 0.21 percentage points, the biggest move since March 2020. Yields rise when prices fall.
Monday’s drop in Treasuries — ultra-low-risk assets that typically shine during periods of market turbulence — highlights how US President Donald Trump’s announcement last Wednesday of steep tariffs against trading partners continues to reverberate across Wall Street. Equities fell sharply on Thursday and Friday, shedding $5tn of market…
