Spiking Bond Yields May Have Paused the Tariffs, but They Could Cost You in the Long Run

US stocks tumbled following President Donald Trump's announcement last week of widespread retaliatory tariffs and a 10% universal import tax, triggering fears of rising consumer prices and a potential recession. But it was surging bond yields, not plunging stocks, that got the White House's attention. Shortly after pausing the "reciprocal tariffs" that went into effect on Wednesday, Trump said he'd been watching the bond market closely and he acknowledged that "people were getting a little queasy." A wave of selling began hitting US Treasury bonds Tuesday night as the prospect of sweeping tariffs fueled concerns about the reliability of US-backed assets. Despite Trump's pause, the Treasury selloff deepened Friday as investors continued their flight from US assets, propelling longer-dated yields toward their largest weekly jump since the 1980s. Normally, during economic uncertainty or recession fears, investors tend to buy US Treasury bonds due to their stability and predictable retu ... Read full article.