Trump Yields to Bond Market Threats?

US treasury bonds are viewed as safe havens during turmoil, but recent sell-off has shaken that belief

- DIPAK MONDAL @ New Delhi

US President Donald Trump, with his bold and aggressive reciprocal tariff announcements, has managed to tie himself in knots. Now, in an apparent effort to undo the damage, he's opted to defer the tariffs by 90 days. Predictably, he's framing the move as a "brave" gesture—claiming global leaders are lining up to negotiate with him, and thus justifying his decision to delay the tariffs.

In another visible climb-down, the Trump administration has also exempted imports of electronic items from the tariff list.

However, the reality is far more complex. While several theories are circulating to explain Trump's sudden change of heart, the most compelling points to fears of a massive sell-off of US Treasury bonds by foreign investors.

BONDS THAT MATTER