Monday’s trading session will go down as one of the most volatile since the COVID crash in March 2020, with global markets caught in the crossfire as the U.S. and China face off over tariffs and neither superpower shows any impulse to back down.
As equity markets teetered, the volatility spilled into every asset class. Bitcoin (BTC), for example, swung as much as 10% intraday. The real focus, however, is on the U.S. 10-year Treasury yield. That’s the so-called risk-free interest rate, which the Trump administration said it wants to lower as it looks to refinance trillions in national debt.
The yield dropped to 3.9% from 4.8% late last week after President Donald Trump bolstered trade tensions with sweeping import tariffs, boosting demand for the Treasury notes.
Bond prices typically rise, sending yields lower, when Wall Street turns risk averse. Unusually, as the risk-aversion increased on Monday, yields turned higher, jumping to…
