US Treasury yields rose on Monday, with the 10-year note climbing above 4.37% and the 30-year bond reaching 4.875%, as investors reacted to heightened political pressure from President Trump on Federal Reserve Chair Jerome Powell to cut interest rates and threats to remove him.
These escalated tensions have raised concerns about the independence of the Fed and contributed to volatility in both the bond and equity markets, driving investors toward safe-haven assets like gold, which hit a record high above $3,400 an ounce.
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The yield increase also coincided with a sharp selloff in US equities and a notable drop in the dollar, which reached its lowest level since September, signaling diminished confidence in US assets as a traditional safe haven.
Meanwhile, the surge in Treasury yields triggered significant declines in cryptocurrency markets, with Bitcoin and Ethereum both falling and trading volumes spiking amid panic selling.
Broader economic uncertainty persists, fueled further by ongoing tariff threats and lack of progress on international trade deals.
Analysts warn that the combination of political interference in monetary policy, tariff risks, and market volatility could threaten U.S. economic stability and increase the risk of recession.
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