Trade Tensions Escalate

In a move that has sent shockwaves through the financial markets, China has announced an increase in tariffs on US goods to a staggering 84%. This development has not only heightened trade uncertainties but also led to a significant rise in United States treasuries yields.

Market Reactions

The immediate aftermath saw Wall Street taking a hit, with US futures plunging in response to China's counter-tariffs. Treasury Secretary Scott Bessent, however, remains optimistic, suggesting that the bond market will soon "calm down" as the US begins to make new trade deals.

Yield Increases

The financial indicators were clear: the 2-year note yield climbed by 8.5 basis points to 3.821%, the 10-year yield surged by 21 basis points to 4.47%, and the 30-year yield rose by 20 basis points, reaching 4.924% by 8:27 am ET.