In the US, the 10-year bond yield decreased to 3.9150%. The bond yield reached its lowest level in October 2024 in the country.

The global dilemma of inflation and recession continues.

The retaliatory tariffs announced by US President Donald Trump on April 2nd against China reinforce concerns of a slowdown in the global economy and increasing inflationary pressures. Uncertainties persist regarding whether the trade disputes with major trading partners of the US could trigger inflation in the country. This situation also leads to concerns about the risks to the progress made by the Federal Reserve (Fed) in fighting inflation. The increased risk perception in the bond markets along with the buying tendency brings the US 10-year bond yield down by approximately 40 basis points in the last trading week, testing its lowest level since October 2024 at 3.9150%.