In early April 2025, global markets were rocked not by a war or a banking crisis, but by a sudden escalation in trade protectionism. US President Donald Trump’s announcement of a sweeping 54% tariff on all Chinese imports triggered a sharp selloff in US Treasuries — ironically, the very assets to which investors traditionally turn for safety during uncertain times. Yields on ten-year Treasury notes surged past 4.5% for the first time since 2023. The yield on the 30-year rose above 5%.
Liquidity in future markets evaporated at a pace reminiscent of the March 2020 pandemic panic. The message was clear: Even the deepest and most systemically important market in the world is no longer immune to political volatility.
The earlier spike shocked a market accustomed to safe-haven rallies during periods of geopolitical stress. This episode underscored a growing paradox in global finance: The US Treasury market, long considered…
