The bond market sent a warning to Donald Trump this week.
A sharp sell-off in Treasurys—unusual in times when recession fears are high and stocks are cratering—had a hand in pushing the president to pause the steepest reciprocal tariffs for 90 days.
Yields, which move in the opposite direction of prices, shot up as the trade war escalated this month, with the 10-year and 30-year US Treasury yields hovering around 4.5% and 4.9% on Friday respectively.
It’s the highest yields have been since February, shortly after Trump took office and sparked a tantrum in the bond market after first laying out his tariff plans.
Why is this unusual?
While markets broadly have been volatile since Trump returned to the White House, such spikes in US government bond yields aren’t normal.
It’s a sign that investors may no longer be viewing government debt as a safe haven asset — something that could spell trouble for the…
