The Wall Street Journal

Bonds Rally as Investors Seek Safety From Tariff Turmoil

The 10-year Treasury yield slipped below 4% for the first time since October in overnight trade

Updated April 4, 2025 at 11:03 AM ET

The U.S. tariffs look more aggressive than feared, raising recession fears among investors.
The U.S. tariffs look more aggressive than feared, raising recession fears among investors. Photo: Spencer Platt/Getty Images

Global government bonds jumped in the aftermath of U.S. President Trump’s tariff announcements, extending their rise as China retaliated by announcing 34% tariffs on U.S. goods.

The 10-year Treasury yield dropped to its lowest in six months at 3.867%, having slipped below 4% in overnight trade. It last traded 13 basis points lower at 3.929%, according to Tradeweb.