US treasury bond yields surge, turning 'safe-havens' into risky assets
US long-term treasury bond yields surged this week, signaling concern in the market. For investors, US treasury bonds are viewed as one of the safest choices. However, following the announcement from US President Donald Trump’s administration...
TroibNews 
US long-term treasury bond yields surged this week, signaling concern in the market.
For investors, US treasury bonds are viewed as one of the safest choices. However, following the announcement from US President Donald Trump’s administration regarding increased tariffs on international trading partners, including a staggering 145 percent on Chinese imports, market confidence in the largest economy in the world is wavering.
As US stocks opened lower on Friday, 30-year bond yields climbed, reaching as high as 4.99 percent, according to a report by Bloomberg. This increase came after the yield peaked at 5.021 percent early Wednesday, up from 4.777 percent at Tuesday’s close and 4.422 percent on April 4.
The yield on US 10-year treasury bonds also rose to 4.516 percent on Wednesday morning, increasing from 4.304 percent at the close of Tuesday and 4.009 percent on April 4.
The rise in treasury bond yields has triggered speculation in the market about potential sell-offs by major investors and raised concerns about the US treasury market.
Henry Allen, vice-president and macro-strategist at Deutsche Bank, commented on the aggressive sell-off in US treasury markets, saying it adds to the perception that “they're losing their traditional haven status.”
Andrew Brenner, head of international fixed income at NatAlliance Securities, indicated that US Treasury Secretary Scott Bessent “has to be making emergency calls to dealers…to make sure we don't have failed treasury auctions, where there are not enough bids to cover the issuance.” This concern came after a Thursday auction of $22 billion in 30-year bonds, while a Tuesday auction of 3-year US treasuries faced weak demand.
George Saravelos, global head of FX strategy at Deutsche Bank, warned, “If recent disruption in the US Treasury market continues, we see no other option for the Fed but to step in with emergency purchases of US Treasuries to stabilize the bond market.”
Anna Muller for TROIB News
For investors, US treasury bonds are viewed as one of the safest choices. However, following the announcement from US President Donald Trump’s administration regarding increased tariffs on international trading partners, including a staggering 145 percent on Chinese imports, market confidence in the largest economy in the world is wavering.
As US stocks opened lower on Friday, 30-year bond yields climbed, reaching as high as 4.99 percent, according to a report by Bloomberg. This increase came after the yield peaked at 5.021 percent early Wednesday, up from 4.777 percent at Tuesday’s close and 4.422 percent on April 4.
The yield on US 10-year treasury bonds also rose to 4.516 percent on Wednesday morning, increasing from 4.304 percent at the close of Tuesday and 4.009 percent on April 4.
The rise in treasury bond yields has triggered speculation in the market about potential sell-offs by major investors and raised concerns about the US treasury market.
Henry Allen, vice-president and macro-strategist at Deutsche Bank, commented on the aggressive sell-off in US treasury markets, saying it adds to the perception that “they're losing their traditional haven status.”
Andrew Brenner, head of international fixed income at NatAlliance Securities, indicated that US Treasury Secretary Scott Bessent “has to be making emergency calls to dealers…to make sure we don't have failed treasury auctions, where there are not enough bids to cover the issuance.” This concern came after a Thursday auction of $22 billion in 30-year bonds, while a Tuesday auction of 3-year US treasuries faced weak demand.
George Saravelos, global head of FX strategy at Deutsche Bank, warned, “If recent disruption in the US Treasury market continues, we see no other option for the Fed but to step in with emergency purchases of US Treasuries to stabilize the bond market.”
Anna Muller for TROIB News
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