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.
