U.S. Treasury yields surged on Wednesday, a sign that investors are selling their safest assets as the latest round of President Donald Trump‘s tariffs take effect.
Why It Matters
Trump’s announcement of sweeping tariffs on almost all U.S. trading partners on April 2—his so-called “Liberation Day”—sent global markets into a tailspin and raised the risk of a recession.
Treasury yields are often viewed as a benchmark for interest rates. When Treasury yields go up, the cost of borrowing generally increases for people, businesses and the government. Rising Treasury yields can also signal expectations of higher inflation.
