Yield Curve Flattens as Markets Digest Trump Tariffs

Treasury markets showed a divergent reaction to Trump’s new tariffs, with short-term yields rising on inflation concerns while longer-term yields remained stable or declined. The 2-year yield climbed 6 basis points to 4.28% while the 10-year yield dipped slightly, suggesting markets expect the Fed to maintain higher rates near-term while long-term growth faces headwinds.



Source link