The US 10-Year Treasury Yield Trend is Unfavorable to Trump, Revealing Cracks in the Global Financial System

BlockBeats News, April 8th, according to CoinDesk's report, Monday's trading session this week became one of the most turbulent trading days since the March 2020 pandemic meltdown, but the real focus was on the US 10-year Treasury yield. This indicator, known as the "risk-free rate," is a key data point that the Trump administration hopes to suppress in order to refinance the trillions of dollars in government debt. Normally, when economic growth expectations strengthen or inflationary pressures rise, investors may reduce their demand for safe-haven assets such as government bonds and instead favor risk assets, leading to an increase in the 10-year Treasury yield. However, during Monday's market sell-off, the US 10-year Treasury yield, which should have declined, instead skyrocketed to 4.22%.

Saxo Bank's Head of Commodity Strategy, Ole S. Hansen, pointed out that "violent fluctuations in long-term US bonds may indicate deep-seated market pressures. The 30-year US Treasury benchmark yield surged from a low of 4.30% to 4.65%, and the 10-year yield rebounded from the previous day's low of 3.85% to 4.17%. Such intense volatility may signal a larger-scale asset reallocation. Speculation suggests that foreign holders may be selling off US Treasuries and withdrawing funds, with market rumors suggesting that some countries have recently sold $50 billion in US Treasuries." This surge is not unique to the US; the UK bond yield saw its largest increase since the October 2022 Trasvas Pension Crisis, and a global rise in sovereign bond yields indicates that market confidence in sovereign debt and currencies is crumbling.