Treasury Yields Running Amok Amidst Tariff Madness

The Trump administration wanted to get bond yields down, but yields have skyrocketed more than in over four decades. Investors are jittery about holding US debt in response to Trump’s trade wars and, possibly, the idea of a president who is pushing a Strategic Bitcoin Reserve in what would amount to a bid against the US dollar. 

Volatility signals a rattled market. The 10-year yield surged more than it has since 1982, signalling that holders of long-term US debt are dumping their positions. The higher yields go, the more you’re paid to hold the debt, because markets perceive a higher level of risk. Once seen as the ultimate stable milquetoast investment, the yield surge from a crash to 3.9% to over 4.5% in recent days has caused investors to question holding long-term US debt.

10-Year Treasury Yields, 1-Month