US Treasury Yields Soar as Confidence in Treasury Market Wanes

On April 11, it was reported that on Friday, US Treasury yields soared to their highest level since February of this year.

Traders complained that as the $29 trillion US Treasury market experienced intensified turmoil, liquidity was deteriorating. The yield on the US 10-year Treasury rose by 0.19% to 4.58%. Traditionally viewed as the ultimate safe haven in the global financial system, US Treasuries are sinking deeper into malaise. Earlier this week, US Treasury yields were below 3.9%, but Trump's erratic tariff policies have shaken investors' confidence in US policymaking and the economy, prompting a mass exodus from US assets.

Peter Tchir, head of US macro strategy at Academy Securities, stated, "If you are a foreign holder, there is indeed pressure globally to sell US Treasuries and corporate bonds." "What the world is really worried about is that they don't know what Trump is going to do."

According to the Bloomberg US Treasury Index returns, Friday's sell-off led to the worst week for US Treasuries since 2019, coinciding with a decline in the dollar.

"We are concerned because the trends you see indicate that this is not a normal sell-off," an executive from the commodities services division of a European bank said. "They indicate that people have completely lost confidence in the strongest bond market in the world." (Financial Times)