FX.co ★ Treasury Yields March Higher on Tariffs Concerns

The yield on the US 10-year Treasury note climbed approximately 6 basis points to reach 4.39% on Thursday, marking its highest level in almost a month. This shift comes as traders evaluate the intensifying trade war and its potential ramifications on the economy. The Trump administration declared a 25% tariff on "all cars not manufactured in the United States," effective April 2. President Trump has also cautioned of potentially imposing "much larger" tariffs on the European Union and Canada should they join forces to counter US trade policies. Concerns are growing that such tariffs could negatively impact the US economy and drive inflation upwards, especially as current economic indicators suggest looming challenges. The most recent CB Consumer Confidence report recorded a decline in March, hitting its lowest point in four years. Furthermore, orders for non-defense capital goods, excluding aircraft, decreased by 0.3%, falling short of the anticipated 0.2% increase. Investors are now focused on the upcoming final estimate for Q4 GDP growth and the latest jobless claims report, expected today, with the PCE report scheduled for release tomorrow.