Overview

• The US dollar's depreciation and rising Treasury yields continue to defy traditional market patterns, signaling ongoing financial instability.
• President Trump's unexpected tariff exemptions for electronics, including smartphones and semiconductors, caused a slight drop in the 10-year Treasury yield to 4.463%.
• Despite the yield decline, the divergence between a weakening dollar and rising Treasury yields remains a key concern for investors.
• Speculation persists over whether major foreign investors, such as China and Japan, might reduce their US Treasury holdings, further unsettling markets.
• Analysts warn that the erosion of US Treasuries' safe haven status could have long-term implications for global investment behavior and fiscal stability.