Treasuries typically provide safe haven, but bond yields are spiking again as investors debate the Fed’s next move

• It has been rude for most Americans 401 (K) s Because Trump opened his reciprocal tariffs in his chart in the rose garden last week. The initial decline in the 10-year yield of benchmark can give hope for households and sellers who want to have a lower mortgage rates, but rates have remained high. The average set average of the 30-year mortgage is still than 6.6%.

President Donald Trump sweep Mutual tariffs: Forced to chaos stock market, but the bonds also took a wild ride. Under the conditions of one of the worst of Wall Street Sale of shares Investors in recent weeks are stored in secure haven assets such as treasures, but the obvious reverse of this trade means final effect pawnshops And the cost of other common loans for Americans remain unknown.

At the beginning of Monday, first of the beginning of October dropped below 4% below 4% in early January. It turned sharply during the unsteady Commercial sessionHowever, since yield yields out of bonds brings all yield repayment terms with at least 20 base points, one BloombergOn a number of Tuesday afternoon, the 10-year yield was approaching 4.30% sign, as the shares are back to close in the red.

There have been many competitive theories that are thrown by market viewers for this dramatic transformation, as the shares and bonds are fascinating at the same time.

“Everyone is trying to make a history of why a great treasury growth arose yesterday.

However, there are some simple explanations that are likely to play. It is clear that investors rushed safety By selling shares last week and buying treasures. It is only natural, said that the merchants partially cover those positions.

“So we see the jump of treasury disasters,” he said.

Mortgage rates remain high as yields

Yieldwhich represent the annual return of the investor, rise as bond prices, and vice versa. Previously occurs if investors believe that the Federal Reserve will have to walk the pace, which makes lower payments to the existing bonds lower.

Therefore, it is not surprising that the yield has developed a market struggle to Price: What will Fed do next? Until February and early March, Merz noted that traders were waiting for a short-term bilateral exchange rate. With the opening of tariffs on Wednesday, weddings forced investors to reduce the sudden price at four or five interest rates, but some are less optimistic.

Friday speech Fed Chair Jerome Powell indicated The Central Bank will continue its expectation and the approach, as the widespread tariffs will increase the prospect of fear struggleor climbing inflation with slow growth. The investors hoped that Fed is ready to ensure lightness ready if the fall continues, Merz said.

“The market has not received it,” he said.

It was rude for Americans 401 (K) because Trump presented his mutual tariffs. The initial recession of yields may hope for households and vendors who want to have a lower mortgage rates based on the 10-year treasury.

In fact, on his social media platform, a video transformed by transforming his lips offered The President wanted to hand over treasures to investors by lowering the yield and by clicking Fed to borrow his level of politics.

The White House did not respond immediately Fortune In order to receive comments on the Bond Market movement this week.

Even if the president intentionally tanks to the market, the strategy may find out that it is ineffective. The average set average level of the 30-year mortgage still sits from 6.6% and has remained as smooth in recent weeks. respectively to Freddie macA number

The spread of the exchange rate and the 10-year yield is currently quite wide, Merz said. It can be increased during market stress periods, he added that investors can make acid loans with safer treasures.

“It’s not helpful for consumers and borrowers,” Merz said.

This story was originally shown Fortune.com