The rise of U.S. 10-year Treasury yields to 4.22% has highlighted deepening issues within the global financial system.
On April 8, amid escalating trade tensions between the U.S. and China and currency fluctuations, this increase gained significant attention. Ole S. Hansen, Head of Commodity Strategy at Saxo Bank, stated that this sudden movement in long-term U.S. Treasuries signals rising stress in the market.
While it was suggested that China’s potential selling of U.S. Treasuries to buy back assets could be a factor, Jim Bianco, President of Bianco Research, emphasized that it was domestic investors selling due to inflation concerns, not foreign investors.
The increase in U.S. Treasury yields is putting pressure on President Trump’s borrowing strategy, and similar interest rate hikes have been observed in global markets. Analysts note that these increases are driven not only by trade tensions but also by actions from large bondholders.
The rising tensions in global markets and the higher interest rates are making vulnerabilities within the U.S. financial system more apparent.
