US Treasuries Fall Amid Tariff Escalation, Global Bond Selloff

U.S. Treasury yields rose notably amid growing concerns over President Donald Trump's tariff policies and escalating trade tensions with China. Trump announced doubling tariffs on steel and aluminum imports from 25% to 50%, accusing China of violating the Geneva trade agreement, which China denies, blaming the U.S. for breaches including tech export restrictions and visa revocations. This uncertainty weighed on U.S. equities and the dollar, while bond markets saw a steepening yield curve with the 10-year yield climbing above 4.44%, nearing levels not seen since 2021. Traders are closely watching upcoming U.S. economic data including the ISM manufacturing index, which unexpectedly contracted in May, and speeches from Federal Reserve officials, with particular focus on Jerome Powell's remarks. International bond markets in Europe and the UK also declined alongside U.S. Treasuries, reflecting broad risk aversion amid the uncertain trade outlook. The market sentiment remains cautious as investors await further developments on trade and economic indicators.