Bond Market Turmoil: Trump Tariff Ruling Triggers Sell-Off of Safe-Haven Assets
May 29, 2025 10:15 Source: Wall Street Insights
The latest ruling by the U.S. Federal Trade Court has triggered a chain reaction in the financial markets. On May 28 local time, the court officially rejected the global tariff policy implemented during the Trump administration, a decision that immediately caused waves in the bond market, leading to a sell-off of major sovereign bonds worldwide.
Market data shows that after the ruling was announced:
The yield on the U.S. 10-year Treasury bond quickly rose 4 basis points to 4.5186%
The yield on the Japanese 10-year government bond increased by 1 basis point to 1.525%
The yield on the Australian 10-year government bond also rose 4 basis points to 4.3740%
Analysts pointed out that this ruling has intensified concerns over the uncertainty of global trade policies. Marko Kolanovic, head of fixed income strategy at JP Morgan, stated: "The sudden reversal of tariff policy may reshape global supply chains, and investors are reassessing inflation prospects and the policy paths of various central banks."
It is noteworthy that this volatility in the bond market coincides with the release of the Federal Reserve's minutes from the May meeting, as concerns about the risk of 'stagflation' continue to heat up. With these dual factors at play, global safe-haven assets are facing a severe test. As of the time of writing, spot gold prices have dropped by 0.3%, and the U.S. dollar index remains strong.
