Market Reacts to China's Tariff Announcement

In a move that has sent shockwaves through the financial markets, China has announced an increase in tariffs on goods imported from the United States to a staggering 84%. This decision has not only pushed Wall Street into further decline but also caused a significant spike in U.S. Treasury yields.

Treasury Yields on the Rise

The immediate aftermath of the announcement saw the 2-year note yield climb by 8.5 basis points to 3.821%, while the 10-year yield surged by 21 basis points to 4.47%. The 30-year yield wasn't spared either, adding 20 basis points to settle at 4.924%.

Looking Ahead: A Calmer Bond Market?

Amidst the turmoil, Treasury Secretary Scott Bessent offered a glimmer of hope, suggesting that the bond market is expected to "calm down" as the U.S. begins to forge new trade deals, potentially bringing more certainty to the markets.