Yields on United States Treasury bonds were expected to fall when President Donald Trump unleashed a torrent of double-digit tariffs on more than 80 countries on his so-called Liberation Day in April. And at first, they did, as investors, weighing the fallout from the unprecedented shift in trade policy, abandoned stocks and rushed to safe haven assets. But then something changed.

While stocks slid, bond prices also began to fall, pushing yields upward on both 10-year and 30-year securities, a sign that investors saw more risk over the longer term in the country whose bonds and currency underpin much of the global financial system.

As the yield on 10-year Treasuries jumped to 4.5 per cent from 3.9 per cent and 30-year yields pushed through the psychological barrier of five per cent,

See Full Page