Stocks have recovered since Trump’s tariff announcement, but the bond market remains turbulent, according to The Wall Street Journal. The 10-year Treasury yield has climbed to around 4.37% due to falling prices, even as shorter-term yields decline on expectations of Fed rate cuts. This “steepening twist” raises borrowing costs and reflects investor uncertainty over inflation, trade policy, and fiscal direction. Analysts say the term premium, added compensation for long-term bond risk, remains elevated, making rate cuts less effective. The average 30-year mortgage rate rose to 6.8% last week. Treasury officials are treading carefully on debt issuance amid increased volatility.
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00:00It's Benzinga bringing Wall Street to Main Street.
00:02Stocks have recovered since Trump's tariff announcement, but the bond market remains
00:06turbulent. According to the Wall Street Journal, the 10-year Treasury yield has climbed to around
00:104.37% due to falling prices, even as shorter-term yields decline in expectation of Fed rate cuts.
00:17This steepening twist is raising borrowing costs and reflects investor uncertainty over inflation,
00:23trade policy, and fiscal direction. Analysts say term premium added compensation for long-term
00:28bond risk remains elevated, making rate cuts less effective. The average 30-year mortgage rate
00:32rose to 6.8% last week. Treasury officials are treading carefully on debt insurance amid increased
00:38volatility. For all things money, visit Benzinga.com slash GSTV.