Market Reacts to Trade Tensions

In a significant market movement, United States treasuries experienced a sharp rise in yields this Wednesday. This reaction comes as China announces an increase in tariffs on US goods to a staggering 84%, escalating the ongoing trade tensions between the two economic giants.

Wall Street Feels the Pressure

The announcement has sent shockwaves through Wall Street, with futures plunging in response. The market's volatility underscores the growing concerns over trade policies and their immediate impact on global financial stability.

Treasury Secretary's Calming Words

Amid the turmoil, Treasury Secretary Scott Bessent offered a glimmer of hope, suggesting that the bond market is expected to "calm down". He anticipates that forthcoming trade deals will introduce much-needed certainty into the market.

Yield Figures Highlight Market Anxiety

The 2-year note yield saw an increase of 8.5 basis points, reaching 3.821% by 8:27 am ET. More dramatically, the 10-year yield surged by 21 basis points to 4.47%, and the 30-year yield climbed 20 basis points to 4.924%, reflecting heightened investor anxiety.