This Is the Biggest Treasury Selloff Since the Pandemic

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.
The yield on 30-year Treasuries briefly soared above 5% with investors increasingly worried President Donald Trump’s tariffs, which kicked into effect today, will send the economy into recession and limit the Federal Reserve’s ability to respond by also igniting inflation. While the selling eased into the European trading day, speculation continued to swirl about the reasons investors were turning their backs on US sovereign debt. 
“This is a fire sale of Treasuries,” said Calvin Yeoh, portfolio manager at hedge fund Blue Edge Advisors Pte. who is selling 20 to 30-year Treasuries futures. “I haven’t seen moves or volatility of this size since the chaos of the pandemic.”
In the past three trading sessions, the 30-year yield has jumped by about 40 basis points, or 0.4 percentage point, the biggest increase since November 2020. On Wednesday, the long-term rate was up two basis points to 4.79%, having earlier surged as much as 25 basis points. 
The surge in Treasury yields, which affect everything from mortgage costs to loan rates, draws into question Treasury Secretary Scott Bessent’s goal of bringing down borrowing costs to help consumers and companies. US bonds have long been the bastion in portfolio construction, with investors counting on America’s stability and wealth to anchor their holdings. Wednesday’s sale by the Treasury of 10-year notes will now be closely-watched as a further test of sentiment. 
For more on the selloff, Tom Keene and Paul Sweeney speak with Viktor Hjort, Global Head of Credit Strategy at BNP Paribas, and Damian Sassower, Bloomberg Intelligence Chief EM Strategist.
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[tatianastarcic]

History is repeating:
- pandemic
- inflation crisis
- trade war
- global economic crisis
- fascists

Do we now have to do this every century and which stock can I invest in I’m tired of losing?

[ntx]

Wait until Chinese said because we cant trade with US anymore then we do not need all the US bond we have and also USD.

[wangjim]

This just means the trust of this government is gone! So simple logic!

[apagoogootwo]

canuck here. i've been screaming since november that canada should dump all US treasuries. regardless of maturity date, and regardless of hits to our balance sheet. the paper is still worth something, and the fed is still in a mood to honour it. that, in my opinion, is a closing window.

[PathosConsultingGroup]

really feels like we are in the first days of the biggest economic and geopolitical realignment since WW2.

[nagakk]

Japan's LARGEST sell off to date !!!
Guts

[romeshwijeyeratne]

who knew the guy who bankrupted 6 businesses (including a casino) would bankrupt america?

[CoolheadSteadyhand]

if oil stays at this price, the US will stop producing most of what it does today because it won't be worth it, they'd have to sell below cost

[Didier]

The global economy currently demands fewer dollars for exports since there is a decrease in the purchase of Chinese goods for export. It won't be long before exporters start getting rid of their bonds. Consequently, China will no longer find it necessary to engage in trade with America, allowing them to offload all their American debt bonds. This move will undoubtedly test the reaction of the American economy.

[pepechinu]

US is now a pariah state and the world's most expensive third world country.

[iamericandavinci]

By the time you see it, it's too late. That's why the majority of analysts never see the recession until it's actually in their face.

[tobiwan]

US treasury yields rising rapidly with a likely recession means the US financial system is coming under pressure already. They cannot afford the deficit or a recession. They will spiral towards default.

[tyuzgbv]

*The Smoot-Hawley Tariff Act of 1930, raised U.S. import duties significantly to protect domestic farmers and businesses. The act increased tariffs on over 20, 000 goods by an average of 40% to 60%*

*Although intended to shield American industries during the Great Depression, the act backfired. It led to retaliatory tariffs from over 25 countries, a collapse in global trade, and exacerbated the economic downturn. U.S. exports and imports fell by two-thirds between 1929 and 1932.  Economists widely regard it as one of the most disastrous economic policies in U.S. history.*

*Trump’s tariffs will have a much larger impact than that of the Smoot-Hawley Tariff Act on the U.S. and global economies, economists said.*

[WillFlynn-fz]

Trump: "China really has me over a barrel" Sweating profusely
Scott Bessent: "That's what Xi said" while laughing hysterically 😂

[susannicky]

With all the talk of AI and the market crashing, I'm starting to feel concerned. How can I safeguard my investment portfolio, which is around $322K? I want to avoid getting overwhelmed or making costly mistakes

[curioussmalls]

I tried out buying $200 in treasuries. I made $11 interest last year. The marginal effect ony taxes was my tax liability increased by $12! What a mothafin'

[Complex-Yet-Simple]

Appreciate the focus on specific indicators like credit spreads and the onshore/offshore Renminbi spread as potential simple 'litmus tests' for the health of incredibly complex global financial systems. Helps cut through the noise to identify possible key signals amidst all the market volatility.

[buzzlightyear]

Guess who is selling US treasure today?

[skeptick]

37 trillion chickens coming home to roost

[Mike-kfm]

Make America Gasp Again?. . . how much of this is caused by Trump’s love of the limelight rather than any serious economic sense?