US Treasury Yields Experience Sharp Decline

Following China's announcement of a 34% retaliatory tariff on all American goods, US Treasury bond yields saw a significant drop early Friday. This development has heightened concerns over a potential trade war and the looming threat of a recession.

Escalating Trade Tensions

The Chinese tariffs are a direct counter to President Donald Trump's recent increase in duties on Chinese imports, which escalated to 54%. This tit-for-tat move underscores the growing tensions between the two economic powerhouses.

Market Reaction

By 6:37 am ET, the financial markets reacted sharply. Key benchmarks witnessed a notable decrease: the 2-year yield fell by 19.8 basis points to 3.527%, the 10-year yield dropped 16.2 basis points to 3.893%, and the 30-year yield decreased by 12.6 basis points to 4.358%.