Industry News
What was behind the selloff in Treasuries?
John Schaffer / Apr 10, 2025
Yields spiking on Treasuries might have contributed to the decision to pause reciprocal tariffs for 90 days. But the reasons behind the sudden selloff are somewhat mysterious.
Although Donald Trump categorically denied that the sharp selloff in Treasuries on Tuesday night prompted him to pause most tariffs later in the day, the spike in the cost of US government debt will surely have been a more pressing concern for the White House than crashing equity markets.
When asked whether the decision to lower tariffs on most nations, with the exception of China, to the 10% base rate was due to the bond market turmoil, Trump said: ‘No, I was watching the bond market. The bond market is very tricky.’
‘The bond market is beautiful now,’ he added.
While it looks a lot better than it did a day ago, the reprieve for Treasuries was less spectacular than the 9% rebound for the S&P 500 after the tariff U-turn.
The selloff
Government bond price initially roses in the face of the US president’s ‘liberation day’ tariff announcements last Wednesday. But yields, which move inversely to prices, then started to climb sharply higher at the start of this week.
The 10-year Treasury yield jumped...
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Apr 18, 2025
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