- 10-year yield falls to 4.51% as investors flee US assets amid rising protectionist risks.
- Trump targets iPhones made abroad and threatens 25% tariffs on Apple products.
- Moody’s downgrade, $3.8T tax bill, and EU trade tensions intensify fiscal and inflationary fears.
US Treasury yields fall across the whole curve following Trump’s threats to impose tariffs on Apple’s iPhones not manufactured in the US and duties on European imports. At the time of writing, the US 10-year Treasury note yield is down two basis points at 4.509%.
Treasury yields dip across the curve as Apple and EU tariff threats deepen concerns over trade war and US debt
Trump’s tariff rhetoric weighed on US assets as the “sell America” trend strengthened. The trade war, which Trump initiated, and concerns about the US fiscal position sparked outflows of US equities, bonds, and the US Dollar.
The trade war escalation, now against Apple, a US-based company, rattled US equity indices, which remained pressured ahead of the Wall Street close. Trump is threatening Tim Cook’s company, saying that any iPhone sold in the US but not made in the country would have to pay 25% tariffs.
Furthermore, he escalated the already difficult discussions with the European Union, saying that he recommended 50% tariffs on EU’s imports beginning on June 1.
Yields on US bonds had retreated somewhat, following a spike sponsored by Moody’s downgrading the US debt, citing concerns of fiscal improvement and fears that inflation would remain higher due to tariffs.
In the meantime, the US House of Representatives passed Trump’s tax bill, which is now on its way to the Senate to be discussed and voted on.
The bill would add close th $3.8 trillion to the already ballooning national debt. Meanwhile, the US 30-year Treasury bond yield rose above 5% due to the effects of a deterioration of the US fiscal outlook.
US 10-year yield vs. Fed funds rate December 2025 easing expectations
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