US Treasuries Gain as Trade War Spurs Inflation and Growth Angst
Fed officials have said that a resilient labor market and sticky inflation mean they can afford to stand pat, even as Trump’s tariffs sapped consumer and business confidence.
Photographer: Samuel Corum/BloombergThis article is for subscribers only.
Treasuries climbed as the fallout from President Donald Trump’s tariffs convulsed markets for another day.
Two-year yields fell notes fell to their lowest since September 2022 earlier in the session and benchmark 10-year yields slumped as much as 17 basis points to 3.95%. But the rally faded somewhat after a solid US jobs and comments from Fed Chair Jerome Powell suggested that the central bank is focused on the impact of tariffs on inflation dashed expectations for immediate rate cuts.