WASHINGTON
President Donald Trump’s tariffs and fueling tensions with China brought economic uncertainties, destabilizing the safe-haven status of US bonds.
Trump’s reciprocal tariffs, announced April 2 that ranged between a 10% base rate to 50%, gave rise to volatility in global markets and shook the US bond market of around $29 trillion.
Recession concerns and rate cut expectations were triggered by the reciprocal tariffs, while stock markets declined across the globe due to the anxiety induced by the tariffs.
Ordinarily, investors sell stocks in uncertain times and seek safe-haven assets, and demand for US Treasuries rise. But the opposite was seen as equities fell and investors sold their Treasury bonds.
This week’s sell-off caused bond prices to fall and yields to rise as investor skepticism came to the fore — some analysts said the unsettling changes in US Treasuries may be…
