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Treasury yields soared to their highest level since February on Friday, as traders complained liquidity was worsening amid a deepening rout in the $29tn US government bond market.
The 10-year Treasury yield climbed 0.19 percentage points to 4.58 per cent amid a deepening slump for an asset traditionally considered the global financial system’s ultimate haven.
The yield has risen from less than 3.9 per cent earlier in the week as Donald Trump’s erratic tariff policies shake investors’ faith in US policymaking and the economy, sparking an exodus from American assets.
While Trump backed down from his so-called reciprocal tariffs on non-retaliating countries earlier this week — agreeing to a 90-day hiatus for most major US trading partners — he placed even steeper levies on Chinese imports.
“There is real…
