Panic selling in U.S Treasury Bonds Unsettle Market

The 10-year Treasury yield increased on Friday, continuing its sharp weekly rise as investors sold US assets in favor of other international safe havens due to President Donald Trump’s dizzying trade actions.

The benchmark 10-year Treasury yield rose an additional 10 basis points to 4 percent. It surged to its highest level since Valentine’s Day.

The 2-year Treasury yield climbed by almost 11 basis points to 3.952 percent. The 10-year yield ended last week at about 4 percent but has risen by more than 50 basis points, marking one of the highest surges ever.

This action reflects a significant shift in how investors view Treasurys. The US Treasury securities have traditionally been a refuge for investors during turbulent times.

This week, traders speculated that China and Japan were selling Treasurys due to heightened trade tensions, but that does not appear to be the case. Low financing costs seem to be a key aspect of the Trump administration’s overall agenda, so the reversal of market trends and rising Treasury yields raised serious concerns in the White House

Rates continued to climb to levels that frightened markets despite the pause.

The increase may have complicated the White House’s trade strategy. Trump reduced tariffs to a universal rate of 10 percent and announced a 90-day tariff pause for most nations. Since China was not included in this reprieve, US tariffs on Chinese imports increased to 145%.

Olumide Adesina

Financial Market Writer

Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.

2 days ago

Add an article to your Reading List

Register now to be able to add articles to your reading list.

” aria-hidden=”true”> Save

4 years ago

Add an article to your Reading List

Register now to be able to add articles to your reading list.

” aria-hidden=”true”> Save