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Following last week’s turmoil sparked by President Donald Trump’s tariffs, US government debt saw a rise on Monday as investors turned to Treasuries. The 10-year Treasury yield dropped 0.11 percentage points to 4.38%, marking its first decrease in yield since April 4.
The White House’s decision to temporarily exempt smartphones and other consumer electronics from tariffs introduced earlier in the month helped ease concerns, leading to a decline in yields. However, uncertainty still looms over Trump’s trade policies.
Despite last week’s significant increase in Treasury yields, some investors believe the recent pressure on US government debt presents a buying opportunity. Wall Street banks foresee potential economic slowdown, which could further drive yields down in the future.
Amidst the ongoing trade tensions, the US stock market showed signs of recovery on Monday, with the S&P 500 index up 0.8% and the Nasdaq Composite up 0.6%. Treasury Secretary Scott Bessent confirmed that there was no major foreign sell-off of US Treasuries last week.