Dramatic sell-off of US government bonds as tariff war panic deepens
Dramatic sell-off of US government bonds as tariff war panic deepens
Falling demand suggests loss of financial confidence in US as Donald Trump escalates trade standoff with China
Summary
US government bonds are experiencing a major sell-off amid market panic over Donald Trump’s renewed tariff war with China, including 104% levies on Chinese goods.
The 10-year Treasury yield surged to 4.42%, with the 30-year briefly exceeding 5%, marking the largest intraday moves since Trump’s 2016 election.
Analysts warn of a potential emergency Fed rate cut. Global markets slumped, while China vowed retaliation. UK gilt yields also spiked, worsening borrowing conditions.
China’s bond-holding strategy remains unclear, raising further concerns for US financial stability.
