Wall Street: the yield on Treasury bonds hits its highest levels since April and generates alarm in the market

Wall Street: the yield on Treasury bonds hits its highest levels since April and generates alarm in the market

He US Treasury bond yield rose this Wednesday, in a session in which the Return of benchmark 10-year notes hit highs since April for fear of a new rise in inflation If the incoming government of Donald Trump enacts new tariffs.

Due to the economic policy that Trump claims he will implement, it is estimated that could increase both growth and inflationbut there are considerable uncertainties about exactly what policies the new government will pursue and what economic impact they will have.

Trump considers declaring a “state of national economic emergency”

A CNN report which indicated that trump weigh declare a state of national economic emergency to provide a legal justification for the imposition of a series of universal tariffs on allies and adversaries, added to worries about inflation on Wednesday.

“With the arrival of the new administration, there is some potential fear of that typical first quarter spike in inflation“, said Michael Lorizioof Manulife Investment Management.

This increase in uncertainty also causes investors to be cautious about buying longer-term debthe added.

He two-year note yieldsensitive to interest rateswent down to 4.289%.

He return of papers in 10 yearsfor its part, goes up to 4.689%, after hitting a high of 4.73%, its highest level since April 25.

He 30-year bond return improved to 4.932%, after reaching the 4.968%, its highest level since November 2023.

Source: Ambito

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