Treasuries Gain as Trump Transition Talk Fuels Recession Angst
Treasuries rallied as President Donald Trump's comments on "a period of transition" for the US economy added to concern that a slowdown could be just around the corner. Benchmark 10-year yields slipped as much as 6 basis points after his remarks Sunday, which followed a volatile week for markets as investors fretted about the impact of tariffs and federal job cuts on growth. Those bonds now yield 4.25%, while the two-year security — which is most sensitive to the outlook for interest rates — pay 3.95%.
- The market's reaction to Trump's comments highlights the ongoing uncertainty surrounding his economic policies, which could continue to weigh on investor confidence and influence monetary policy.
- Will the recent Treasury yield declines be enough to stem a potential recession, or do they merely signal a temporary reprieve for the US economy?