CoinDesk: Bitcoin, Ethereum, Crypto News and Price Data
Apr 8, 2025

U.S. 10-Year Treasury Yield Increases Amid Rising Trade Tensions

1 min

Monday's trading session was marked by significant volatility across global markets, reminiscent of the COVID crash in March 2020. Key points include:

  • U.S.-China trade tensions led to market instability.
  • Bitcoin experienced swings of up to 10% intraday.
  • The U.S. 10-year Treasury yield dropped from 4.8% to 3.9%, then rose to 4.22% as risk aversion increased.
  • The U.K. saw its sharpest rate increase since October 2022, indicating global instability.
  • Long-dated Treasuries faced a sell-off, with the 30-year benchmark rising from 4.30% to 4.65% in one day.
  • Reports suggest China may have sold $50 billion in Treasuries, although some analysts dispute this narrative, emphasizing a domestic sell-off due to inflation concerns.
  • China currently holds approximately $761 billion in U.S. government debt, the largest after Japan.
  • China's ability to leverage its Treasury holdings in the trade war is questioned, as these investments are linked to its current account surplus.