Global Market Jitters: Trump's New Tariff Threats Shake Bond Yields
German 10-year bond yields surged amid President Trump's 30% tariff announcement on EU imports, escalating trade tensions. The rise rattles markets and draws EU contingency plans for U.S. goods tariffs. Simultaneously, French bond yields see minor hikes as President Macron prioritizes defense spending expansion.
On Monday, German 10-year government bond yields briefly soared to their highest levels since April after U.S. President Donald Trump announced a fresh wave of 30% tariffs on European Union imports, deepening trade tensions.
The unexpected move, revealed in letters to EU President Ursula von der Leyen and Mexican President Claudia Sheinbaum, prompted a sharp increase in benchmark Bund yields, reaching 2.733% before stabilizing. Meanwhile, thirty-year yields hovered at 3.236%, near their mid-March peak.
Market reactions varied as analysts noted the tariff threat, though severe, was consistent with Trump's tactics. EU responses include planned tariffs on U.S. goods, as voiced by Italian Foreign Minister Antonio Tajani. Simultaneously, France's bond yields edged up as President Macron announced accelerated defense budget plans.
(With inputs from agencies.)
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