Domestic investors sold a large number of U.S. stocks and bet on U.S. bonds because they judged that government bond prices were at a low point.
Investor sentiment was driven when government bond prices fell again (yields rose) due to doubts about tariff proposals and interest rate cuts brought out by the Donald Trump administration in April. As the bond market, which has been gradually stabilizing since the suspension of tariffs, faltered again in May, domestic individual investors began to buy.
The 10-year U.S. Treasury yield fell to 4.1% at the end of April, but surpassed 4.5% on the 14th of last month, returning to the level at the time of the “tariff shock.” They started betting on a similar pattern of rising government bond prices (falling yields) again.
U.S. long-term bond rates have already fallen slightly (price increases) from their highs. The interest rate…
