Dollar Surges, Treasuries Fall as US-China Trade Tensions Ease

Bessent Says China Tariff Pause Level ‘Obviously a Floor’

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By Alice Gledhill and Greg Ritchie

May 12, 2025 at 7:23 AM UTC

Updated on

May 12, 2025 at 9:22 AM UTC

The dollar soared and Treasuries fell as the trade war between China and the US eased, stoking appetite for risk assets.

A gauge of dollar strength rose as much as 1% as the two nations agreed to temporarily lower some tariffs for 90 days. US Treasuries fell, sending the two-year yield up as much as 10 basis points to 3.99% as traders pared bets on interest-rate cuts from the Federal Reserve.