The U.S. president, driven by an interventionist economic vision, has unleashed a wave of instability by disrupting the balances of rates and Treasury bonds. Opposing him is an unrelenting market that did not take long to react. This pulse, far from being anecdotal, exposes the vulnerabilities of a strained economy and reignites the debate over the reliability of traditional assets in times of uncertainty.
In summary of the aforementioned:
1. Donald Trump triggered a market reaction by announcing new customs tariffs, causing a rise in bond yields.
2. The yield on the ten-year Treasury bonds exceeded 4.5%, revealing investors' distrust regarding the U.S. president's budgetary decisions.
3. Under pressure, Trump temporarily suspended his measures, without fully calming the markets.
4. This instability reignites doubts about the strength of U.S. monetary policy and the potential role of bitcoin as a safe haven.
Donald Trump's recent attempt to redefine trade relations through new customs tariffs immediately shook the U.S. bond market. In response to this announcement, investors massively sold Treasury bonds, causing a dizzying rise in ten-year yields, which surpassed 4.5%.
Many observers characterize this sequence as a head-on clash between politics and the market. Saifedean Ammous, a recognized economist, stated on platform X (formerly Twitter) on April 23, 2025: Trump fought against the bond market, but the bond market won.
Several key facts help understand the intensity of this reaction:
1. The announcements of new tariffs: Donald Trump revealed his intention to impose new customs duties, especially on Chinese products, which reignited protectionist rhetoric.
2. A retreat of investors: this initiative was immediately sanctioned by the markets, as investors reduced their exposure to Treasury bonds due to fears of economic tensions.
3. The rise in bond yields: the ten-year yield on U.S. Treasury bonds surpassed the 4.5% threshold, a clear signal of distrust regarding future budgetary stability.
4. A distrust towards budgetary policy: market operators interpreted these decisions as a potential risk to the trajectory of U.S. public debt.
In response to the immediate and negative market reaction, Donald Trump was forced to revise his position. He announced a temporary freeze on tariff increases for 90 days.
This maneuver was perceived as an attempt to calm financial tensions. However, it was not enough to completely dissipate investors' concerns, and yields remained high in the days following.
This sequence of events reignited discussions about the independence of the Federal Reserve and the credibility of U.S. monetary policy.
In this climate of growing uncertainty, some analysts have mentioned the resurgence of bitcoin as a safe haven.
This sequence of events reignited discussions about the independence of the Federal Reserve and the credibility of U.S. monetary policy.
The course of events will depend on several factors:
1. Trump's ability to formulate a coherent economic strategy.
2. The Fed's reaction to this political instability.
3. The perception of risk by international markets.
If current tensions persist, institutional actors are likely to seek to further diversify their assets. In this context, cryptocurrencies could once again emerge as a credible alternative.