From Morningstar: 2025-04-16 10:30:00

In a surprising turn, US Treasury bond yields rose amid market turmoil, despite fears of a recession. The unexpected jump was driven by factors like inflation worries due to tariffs and hedge funds liquidating bond positions. Non-US investors are now cautious about investing in the US, seeing European bonds as safer.

After President Trump announced harsh tariffs, bond yields initially fell but then spiked to record highs, with the 10-year hitting 4.58%. The market is demanding a credit premium on US assets, raising questions about the sustainability of US debt. Investors are uncertain if Treasuries still provide a safe haven amidst escalating tensions.

The spread between US Treasury and German bund yields widened, indicating a flight to eurozone bonds seen as safer. Uncertainty remains as Trump’s tariffs impact markets. While the US remains a leading economy, some investors are reducing exposure to Treasury bonds in favor of European government bonds due to US policies that may hinder growth. 1. The stock market experienced a significant drop today, with the Dow Jones Industrial Average falling by 500 points. This decline was attributed to concerns about rising inflation rates and interest rates, leading to investor uncertainty and sell-offs across various sectors.

2. A new study published in a reputable medical journal revealed that the Pfizer-BioNTech COVID-19 vaccine is 95% effective against severe disease caused by the Delta variant. This data comes as a relief amidst rising concerns about the variant’s impact on vaccine efficacy and public health efforts.

3. The United Nations announced that global food prices have hit a 10-year high, with the Food Price Index rising by 33.9% compared to last year. This increase is primarily due to supply chain disruptions, extreme weather events, and rising energy costs impacting food production and distribution worldwide.



Read more at Morningstar: Are Trump’s Policies Leading to Higher Treasury Yields?