Though the increases were pared in New York trading after US economic data provided no fresh catalyst for higher yields, the Trump administration’s late-Wednesday announcement of a 25% tariff on foreign-made cars next month saw the 30-year Treasury yield reach 4.75%, the highest level since February 20.
The 30-year exceeded the five-year Treasury yield by more than 63 basis points, the widest gap since early 2022. The spread continued to widen as five-year yields led the retreat, aided by block trades in futures. Shorter-maturity Treasury yields have been curbed by the prospect of Federal Reserve interest-rate cuts later this year in response to signs of slowing US economic growth.
“The tariffs are weighing on the bond market,” said Tom di Galoma, a managing…
