Investors have aggressively dumped long-term US government bonds in a historic loss of faith in the financial market’s most coveted safe haven asset amid fears inflation caused by a global trade war could prevent interest rate cuts by the Federal Reserve.
The sharp rise in the bond rate came almost a week after US President Donald Trump unveiled sweeping tariffs, wiping hundreds of billions of dollars from stocks and stoking fears the trade war will drive up prices in the world’s biggest economy.
Source: https://www.afr.com/markets/debt-markets/bond-rout-shakes-investors-as-world-s-safe-haven-loses-its-appeal-20250409-p5lqhs