Global Bond Yields Surge Higher on Tariff Concerns

The selloff in stocks and bonds is gathering momentum as China retaliates to US tariffs with new levies of its own, upping the ante in the trade war that has roiled global markets.
US equity futures fell about 1.7% after China announced new tariffs of 84% on US goods, after the Asian country signaled earlier it had the will and means to “fight to the end.” Stocks in Europe slumped more than 4%.

The yield on 30-year Treasuries briefly surged above 5% for the first time since November 2023 amid growing doubts about the haven status of US sovereign bonds. The selloff fueled declines in government debt in other markets. The UK’s borrowing costs surged to the highest since 1998, and Japanese 40-year bond yields struck a record high. The dollar weakened for a second day.
For more on the turmoil, Bloomberg's Tom Keene and Paul Sweeney speak with Thierry Wizman, Director of Global Currencies & Interest Rate Strategist at Macquarie.
--------
Watch Bloomberg Radio LIVE on YouTube
Weekdays 7am-6pm ET


Subscribe to our Podcasts:


Listen on Apple CarPlay and Android Auto with the Bloomberg Business app:

Visit our YouTube channels:

[capooda]

Crashing equities, rising bond yields, and a weaker dollar. So much winning.

[michaelmorse]

Tariffs is the excuse...the symptoms have been around for over 20 yrs.

[jasontysoe]

The media need to be speaking about this issue, like you are now. For too long, everyone tries to take him unseriously, that he doesnt mean many of the things he says. The damage he doing to trust, is unsustainable. The US reputation as a good creditor, as someone who can be trusted, is now in trouble. Just as in his business dealing, where he was dishonourable and failed to honour any contract or good faith agreement.

[floatfarmhouse]

I'm a US Cold War veteran, been here in Europe for 40 years. Beyond the economic issues here is the fact that ANYTHING per America insofar as security, business or government is involved, now has pretty much zero credibility. I reiterate, ZERO credibility. So, even if tomorrow everything magically reverted, the US has destroyed its credibility. What's the value on that?

[davzip]

“Bailing out hedge funds is just saving the economy, ” says man looking for taxpayer bailout.

[gt]

when your adversaries own all your debt.

[dave]

As of December 2024, China held approximately $759 billion in U.S. Treasury securities, making it the second-largest foreign holder after Japan. Lets hope China doesn't start selling !

[thomasberry]

As an average middle class american, the "fabulous" economy and stock market does not reach families like mine. We are struggling far more than times we can relax.

[MuchoMate]

this is the actual news, even after tonights pause on most countries, also 10% is still insane

[nonexistent]

"This is not a crisis that's been building up the last few months"
Trump months ago, "it'll be the biggest tariffs you've ever seen. Huge!"

Dudes been under a rock 😂

[jp-rs]

this is like the oil shocks, except for we are doing it to ourselves

[larryhorowitz]

Part of the reason for overseas selling of US assets, including bonds, is to generate dollars, which are needed due to the overseas dollar shortage.

[richardcondon]

Treasury finding it harder to place new bonds sales with even higher yields not making them palatable as the Trump frenzy scares away some and others simply boycott our bond market.

[TomPaine-ttrx]

People never talk about all the people selling bonds as they have been fired and need
Money as well as margin calls and banks seeing treasuries liquidated …

[hahamasala]

"2025 FEELS like a US driven situation..." 😅

[pete]

How can you say "our economy has been great" when we are seeing all time credit card debt, an all time high in car repos, $37T in debt, with a $2T annual deficit? The economy was great for who? Prices of everything has been going up while income stays the same. It was unsustainable

[Complex-Yet-Simple]

The distinction drawn between current credit spreads and typical recessionary levels is crucial context. While perhaps not flashing red yet, watching those investment-grade and particularly the leveraged finance spreads feels like a relatively simple proxy for gauging how close the complex financial plumbing is to potentially seizing up, which often precedes or necessitates central bank intervention. A key pressure point to monitor.

[stevemelton]

Hold your horses. Bonds will drop with the upcoming downturn

[farmerdude]

Tariffs went on pause because the bond market was on fire. IMO

[shootera]

Japan engineered the credit market rout which forced Trump to back down.