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Despite concerns about investor confidence in U.S. Treasury bonds, demand for these government securities remains strong. This ongoing interest comes even as rising yields suggest that some investors may be selling off their sovereign bonds. According to data from gold.org, the trading volume of U.S. Treasury bonds has reached an impressive $179.70 billion.
On Thursday, Treasury yields continued their upward trend, fueled by growing fears of escalating trade tensions. This occurred even as the U.S. President made efforts to alleviate these concerns, suggesting the possibility of a temporary pause lasting over 90 days.
Interestingly, tariffs appear to play a key role in benefiting government bond yields. Higher tariffs often lead to increased inflation expectations, which, in turn, can boost the yields of these securities. If additional tariffs persist for a prolonged period, the likelihood of inflation rising becomes even more certain.
The yields on 10-year U.S. Treasury bonds climbed to 4.436%, a significant increase from the previous day’s closing level of 4.277%. During Thursday’s trading session, yields hit a low of 4.282% and peaked at 4.436%.
This dynamic market movement underscores the complexity of the global financial landscape, where demand for “safe-haven” assets persists despite the challenges and uncertainties that loom.
