On Wednesday, in an apparent response to the latest tariff increase by President Donald Trump on China to 104%, the yield – or interest rate – on the benchmark 10-year U.S. Treasury bond rose again, possibly spurring a cut in interest rates by the Federal Reserve.
“The exodus from longer-dated US Treasuries accelerated, fueling the biggest selloff since 2020 in what are supposed to be the world’s safest assets,” Yahoo Finance reported. U.S. Bonds are backed by the government, and the U.S. economy has been the strongest in the world for decades, so investors think the government will not default on them, making them a safe proposition. But they become less valuable as inflation rises, and some investors have been voicing concern that inflation may well result if President Trump’s tariffs are too harsh and are left in place.
On Monday, JP Morgan Chase CEO Jamie Dimon warned…
