What the Dip in Treasury Yields Says About Trump’s Tariff Plans | Global News Avenue

The 10-year Treasury yield fell to its lowest level in nearly a month on Monday, a sign that one of Donald Trump’s latest Cabinet picks could ease investor concerns about tariffs and inflation.

Yields tumbled on Monday, falling to 4.27% in late afternoon from 4.41% at the end of trading on Friday, hitting their lowest level since Oct. 29. This is the turning point of the decade and the currency has surged to its highest levels highest level since July After Trump won the presidential election.

Investor concerns about inflation weigh heavily on Treasury yields, so some economists believe the decline in yields may reflect trader optimism about Trump’s choice Scott Bessent becomes finance minister May moderate some of the president-elect’s tariff plans.

Economists generally believe that Trump’s campaign proposals to impose high tariffs on foreign products – including 60% tariffs on Chinese goods and up to 20% tariffs on goods from other countries – will push up consumer prices. and cause inflation.

Bessant expressed support for Trump’s tariff proposals but also said the tariff threat could be used as a negotiating tool without actually implementing them.

“We do not view him as a trade hawk,” Deutsche Bank chief economist Matthew Luzetti and other economists wrote in a research note to clients. “As such, Bessant’s presence should serve as a counterweight to Trump’s most extreme tariff impulses and other voices supporting these policies.”