US Treasury Yields Rise Amid Tariff Uncertainty, Financial Stocks Slide

U.S. Treasury yields have been rising steadily, with the 10-year yield reaching 4.394% and the 30-year yield hitting 4.929%, marking the longest streak of increases in several months. This rise is attributed to the Federal Reserve's reluctance to cut interest rates, ongoing geopolitical stability with no major oil supply disruptions, and concerns over inflation driven by sustained higher oil prices. The market is also reacting to renewed trade tensions as the Trump administration signals the potential reinstatement of tariffs starting August 1, creating uncertainty ahead of a July 9 trade deal deadline. Higher Treasury yields have increased borrowing costs, negatively impacting financial and housing stocks, and causing investors to shift from riskier assets like stocks and bitcoin into bonds. Additionally, recent U.S. budget legislation projected to widen the deficit and upcoming Treasury auctions are adding to market volatility. Overall, these factors combine to suggest a cautious economic outlook with possible headwinds from trade policy and monetary policy decisions.