U.S. Treasury yields plunged on Friday as investors rushed into safe-haven assets, alarmed by the escalating trade tensions between the U.S. and China - the world's largest and second-largest economies.
The 10-year Treasury yield dropped to 3.918%, its lowest since October 2024, marking a sharp decline of nearly 14 basis points from the previous session. The 2-year Treasury yield experienced an even steeper decrease, falling by 18 basis points to 3.541%.
Earlier this year, the 10-year yields had surged past 4.8% on optimism over potential tax cuts from the Trump administration. However, sentiment reversed after U.S. President Trump unveiled a sweeping tariff plan earlier this week, which affected over 180 countries. In response, China announced a 34% tariff on U.S. imports today, adding to markets' fears of a global trade war and its impacts on economic growth.
Yields temporarily cut some of their losses for the session after the release of the U.S. March jobs data, which showed a stronger-than-expected rise in employment but a higher-than-anticipated unemployment rate.