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.

Related: A Smart Beta Bond ETF for Rising Interest Rates

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.

For more information on the fixed-income market, visit our bond ETFs category.

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