President Donald Trump denied that bond market volatility influenced his decision to implement a 90-day tariff pause on U.S. trading partners, despite significant yield fluctuations that saw the 10-year Treasury yield swing from 3.59% to 4.81% over the past year.
What Happened: “The bond market was getting the yips, but I wasn’t,” Trump told Time magazine, dismissing speculation that financial market stress prompted the policy reversal. “I know what we have.”
The bond market experienced one of its largest short-term moves in recent history during early April, with the 10-year Treasury yield dropping below 4% around April 4 before surging past 4.5% by April 11. Yields move inversely to prices, and higher yields translate to increased borrowing costs affecting mortgages, personal loans, and auto …