Overview

• U.S. Treasury yields have risen unusually during stock sell-offs, breaking their traditional role as a safe haven for investors.
• Trump's recent tariff adjustments, including a 90-day reprieve for most countries but increased levies on Chinese goods, have added uncertainty to the bond market.
• The forced unwinding of hedge fund strategies, such as basis trades, has triggered rapid sell-offs, further destabilizing the market.
• Concerns grow over potential reductions in U.S. Treasury purchases by major foreign investors, including Japan and China, due to shifting trade dynamics.
• Financial advisors recommend defensive portfolio adjustments, such as investing in TIPS, short-term Treasuries, and buffer ETFs, to mitigate risks from ongoing volatility.