On Day One, Trump Appeases Bond Traders and Pushes Down Rates
- Treasury yields approached lowest levels of year to date
- Anticipation of tariffs has boosted inflation expectations
This article is for subscribers only.
For all the hand-wringing about the potential fallout of Donald Trump’s expansive, pro-growth policy agenda, the US Treasury market has gotten off to a smooth start.
In Trump’s first full trading day back in the White House, government bonds rallied, pushing down yields to their lows of the year, while stocks rose and the dollar regained its footing. Optimism spread across financial markets as Trump, who kicked off his second term with a flurry of executive orders on immigration, diversity and other issues, said that he’d hold off on immediately slapping tariffs on China and would only consider putting levies on Mexico and Canada next month.