Trump’s New Tariffs Rattle Global Markets

“Global markets convulsed as sweeping new U.S. tariffs went into effect, setting up Wall Street for another tense session,” the Wall Street Journal reports.

“Taking center stage was the selloff in U.S. Treasurys, a keystone asset in global financial markets. The yield on the 10-year note, the reference point for trillions of dollars in loans and securities, was recently at 4.38%, after rising as high as 4.47% earlier Wednesday.”

“For bond investors, the sharp rise in yields echoes a selloff at the depth of the Covid meltdown, when traders sold whatever they could to raise cash. Further increases in Treasury yields could add to pressure on economies already hit by rising prices and slowing trade due to tariffs.”

Playbook: “The issue really worrying traders now is that U.S. bond yields have soared even as the stock market tumbles, a highly unusual situation which this viral tweet sets out. If sustained, it could mean higher borrowing costs for everyone — from mortgage rates to consumer and business credit.”