11.04.202507:55:51UTC+00US 10-Year Treasury Yield Posts Steep Weekly Rise

Last week, the yield on the US 10-year Treasury note flirted with 4.5% before settling at approximately 4.4% on Friday, marking an almost 43 basis points rise for the week. This increase suggests that US Treasuries might be diminishing in their role as a safe-haven investment. The bond market experienced a sell-off as foreign investors retreated from US assets. This movement also affected equities, the dollar, and government bonds, spurred by escalating economic concerns over President Trump's trade policies. Tensions with China have escalated, with tariffs now impacting Chinese goods with rates reaching up to 145%. Additionally, the US maintains a 10% tariff on imports from most nations, with specific levies of 25% on steel, aluminum, and automobiles. Although a 90-day truce announced by President Trump offered a temporary break and optimism for continuing trade negotiations, investor confidence remains fragile, with increasing fears of potential stagflation.