“ It is not normal ”: Trump’s prices have turned the bond market upside down

The basis of the financial system trembled on Friday, the state bond yields increasing sharply while the chaotic deployment of the tariffs shaken the faith of investors in the pivotal role played by the United States in the financial system.

The obligations of the American government, called treasury bills because they are issued by the American treasury, are supported by the full faith of the American government, and the market for treasury bills has long been considered one of the safest and most stable in the world.

But the erratic behavior of the treasury market all week has raised fears that investors are turning against American assets as President Trump’s trade war degenerates.

The yield on a 10-year treasure, which underpins the borrowing of companies and consumers and is undoubtedly the largest interest rate in the world, increased by 0.1 percentage points on Friday. Friday increase added to net movements throughout the week which took the yield on the treasure at 10 years under 4% at the end of last week at more than 4.5% this week.

These increases may seem low, but these are important movements on the treasury market, encouraging investors to warn that Mr. Trump’s pricing policies cause serious troubles. It also counts for consumers. If you have a mortgage or car loan, for example, the interest rate you pay is linked to the yield at 10 years.