US 10-Year Treasury Yield Drops Below 4% Amid Trade War Concerns

Treasury yields in the U.S. fell significantly, with the 10-year note dipping below 4% for the first time since October, as fears surrounding President Trump's new tariff policies intensified concerns about a potential recession. The tariffs, which include a baseline levy of 10% on imports and significantly higher rates on certain countries, have triggered a broad flight to safety among investors, leading to a substantial drop in bond yields across various maturities. Analysts predict that the Federal Reserve may respond with several rate cuts this year, heightening expectations of monetary easing. The market's reaction reflects growing worries about the U.S. economy's outlook amid escalating trade tensions. In response to the declining yields, investors are increasingly turning to safe-haven assets, further impacting global bond markets. Overall, the situation underscores a complex interplay between trade policies and market reactions, with implications for both domestic and international economic stability.