It’s been a volatile year so far for the bond market, with deficit fears, tariff tantrums, and skittishness about foreign buyers, but there are still fresh developments ahead that could shake things up, Societe Generale said.
Strategists pointed to the handful of fits US bond investors have thrown so far this year, largely stemming from concern about President Donald Trump’s tariff agenda and fears over the rising budget deficit in the US.
The worry is both that tariffs will raise inflation, which will keep interest rates high, and that the national debt is scaling to an unsustainable level. Both possibilities are making investors less willing to hold onto US Treasury bonds unless the government offers more attractive yields.
“The first six months of the Trump administration have rattled bond markets, putting pressure on the long end of yield curves,” strategists wrote in a note on Friday. “A shift away…
