- Risk-off sentiment has permeated markets after U.S. President Donald Trump said he would impose new 100% tariffs on Chinese goods from November.
- Other safe haven assets, including gold and the Swiss franc, also moved higher on Tuesday as stocks sold off.
Government bonds rallied across the globe on Tuesday as risk-off sentiment gripped equity markets and saw investors piling into safer assets.
Stocks listed in Europe and Asia lost ground and U.S. stock futures dropped as investors weighed the potential fallout from renewed U.S.-China trade tensions after President Donald Trump slapped new 100% tariffs on Chinese goods. The levies, which will apply to Chinese imports from Nov. 1, came in response to Beijing tightening export controls on critical rare earth minerals.
Trump’s initial announcement on Friday saw $2 trillion in value wiped off of stock markets.
Government bonds rallied across the globe on Tuesday. The yield on the U.K.’s benchmark 10-year government bonds, known as gilts, lost 8 basis points by 1:46 p.m. in London (8:46 a.m. ET), while yields on U.S. 10-year Treasurys were 3 basis points lower, paring deeper losses seen earlier in the day. Yields on government bonds in France, Germany, Italy, Australia and Japan also edged lower.
One basis point is equal to 0.01% and yields and prices move in opposite directions.
Source: https://www.cnbc.com/2025/10/14/global-government-bonds-rise-as-trump-slaps-new-100percent-tariffs-on-china.html