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US government debt increased on Monday as investors took treasures after a route last week driven by concerns about President Donald Trump’s tariffs.
The 10-year Treasury yield, which determines the costs of government borrowing and underlines the prices of financial assets worldwide, dropped 0.11 percentage points on Monday to 4.38 percent. This puts the 10-year-old on track to record the first day of fall in yield, which move in the opposite order since April 4.
Monday’s mass came after the White House at the weekend temporarily excluded intelligent phones and other electronics of consumption from the “reciprocal” steep tariffs it introduced earlier this month.
Trump had already stopped most of the mutual tasks shortly after they came into force last week, but raised taxes in China in a decision that increased concerns for American technology companies, which are highly exposed to the country.
“While the uncertainty on Trump’s tariffs is far away, we think the pause (in the main technology products) shows a sensitivity to market stress from the administration,” said Ulrike Hoffmann-Burchardi, leading Global Capital Investment Officer at UBS Global Wealth Management.
The 10-year treasure yield increased by about 0.5 percentage points last week in its most weekly growth since 2001. The Treasury Sale, was usually considered one of the world’s major paradise, caused concerns that investors were avoiding US assets in general.
Some investors said the pressure on the US government debt had created a good entry point, with yields now much more liquid than they were a week ago. At the same time, treasures tend to gather when economic growth breaks down, something that Wall Street banks see as an opportunity.
“Government bonds seem very attractive here. This has begun to create attractive opportunities for long -term investors. If you expect US growth to fall further, then yields can be much lower forward,” said Mohit Mittal, the chief of investment strategies in Giant Pimco.
Mittal added that even with a pause in reciprocal tariffs and technology engraving, Trump had “created an environment of extreme uncertainty”.
“Until we get more security, businesses and consumers will continue to act carefully. This brings us a recession in 2025. This is the basic story for the bond market,” he said.
Scott Bessent, the US Treasury Secretary, said in a television interview on Monday that there was no evidence of significant sovereign sale of the US Treasury last week.
This was supported by New York Federal Reserve Custodian data, which showed that the Holdings Treasury in the official sector was modestly set up on the week to 9 April, wrote Meghan Swiber, a US Bank Strategist.
Investors in the US stock market have also continued to purchase shares after a recent decline has attracted the market away from the last levels.
The Chip S&P 500 index increased by 0.8 percent on Monday, reducing its losses by 2025 to 8.1 percent. Nasdaq heavy complex Nasdaq increased by 0.6 percent on Monday.
