Global markets have been gripped with volatility after U.S. President Donald Trump raised the pressure on China and fueled fears the world’s two largest economies could trigger an all-out trade war.
Trump recently fanned the flames late Thursday when he instructed U.S. trade officials to consider $100 billion in additional tariffs on China. Beijing on Friday warned it would fight back “at any cost” to safeguard its interests.
Consequently, in response to the escalating tensions, traders have been dumping riskier equity market exposure and shifting assets toward safe-haven plays like U.S. Treasury bonds. Yields on benchmark 10-year Treasury notes have dipped to 2.781% from the 2.94% highs back in February in response to rising bond prices.
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