Inflation Fears Rattle Treasury Markets Amid Policy Volatility
Treasury traders opened a holiday-shortened week grappling with whipsawing yields as political shocks overshadow economic fundamentals. The 30-year bond yield fell 3 basis points to 5.031% after former President TRUMP floated 50% EU tariffs via social media, erasing gains from last week’s tax legislation progress.
Market fragility was laid bare as the 10-year yield dropped 4bps to 4.509%, with the policy-sensitive 2-year note dipping to 3.993%. The abrupt moves underscore how executive branch communications now rival Fed guidance in moving rates markets.