US Bonds and Dollar Face Rare Dual Sell-Off as Tariff Fallout Deepens

Unprecedented market volatility raises concerns over the safe-haven status of US assets, with investors seeking alternatives like gold and German bonds.

The US bond market experienced a sharp sell-off, with 10-year Treasury yields surging to 4.53%, marking the highest level since February 2025.
The US dollar weakened instead of strengthening, challenging its traditional role as a global safe haven during economic uncertainty.
China retaliated against President Trump’s tariffs by imposing an 84% levy on US goods, escalating global trade tensions.
Investors are increasingly turning to alternatives such as German government bonds and gold, signaling declining confidence in US assets.
Analysts warn that the tariff-induced disruptions could permanently undermine the perception of US bonds and the dollar as reliable safe havens.