FX.co ★ US 10-Year Yield Rallies to 6-Week High

On Wednesday, the yield on the US 10-year Treasury soared to approximately 4.5%, reaching its highest point in six weeks. This surge reflected investor reactions to President Donald Trump's assertive tariff strategies and their potential effects on both economic growth and inflation. Today marked the activation of Trump's reciprocal tariffs, which include a cumulative 104% levy on goods imported from China. Investors faced disappointment due to the absence of substantive progress in trade negotiations, fueling concerns that the intensifying global trade tensions might tip the US economy into a recession. Additionally, US Treasury yields faced downward pressure amid speculation that foreign investors are offloading US Treasuries due to worries about trade-related policies. The Treasury Department conducted an auction of $58 billion in 3-year notes on Tuesday, the first coupon issuance since the announcement of these tariffs.