Bonds crater, 10-year yield spikes briefly above 4.5% in confounding move that's worrying Wall Street

The bond market — not a plunging stock market — is the talk of Wall Street with prices tumbling and yields spiking, unusual action during times when fears of a recession are growing where fixed income is typically considered a reliable safe haven.

The bond market — not a plunging stock market — is the talk of Wall Street with prices tumbling and yields spiking, unusual action during times when fears of a recession are growing where fixed income is typically considered a reliable safe haven.

The 10-year Treasury yield jumped 19 basis points to 4.45% and at one point overnight climbed above 4.51%. The yield has rebounded through where it was the day before President Donald Trump’s tariff plan was unveiled last Wednesday and is currently at the highest since February. The 30-year Treasury yield hit a high of 5.02% overnight, a level not seen since November 2023.

The 2-year Treasury yield rose 2 points to 3.76%. One basis point is equivalent to 0.01%. Yields and prices move in opposite directions.

Trump’s next set of tariffs kicked in overnight, including a total rate of 104% on Chinese imports. China then retaliated early Wednesday, further embroiling the globe in trade turmoil.

As Trump has started this trade fight with the world, equity prices have tumbled, with the S&P 500 losing 12% in only four sessions on growing worries he has triggered a recession.