02.04.202520:34:12UTC+00US 10-Year Bond Yield Rise as Markets React to Trump’s Tariff Announcement

On Wednesday, the yield on the U.S. 10-year Treasury note climbed above 4.2%, recovering from its lowest point since October 18. This uptick followed President Donald Trump's announcement regarding tariffs. Trump confirmed his administration's plan to impose a 25% tariff on auto imports, effective from midnight on Thursday. He asserted that this initiative would reinvigorate domestic manufacturing and restore jobs, although its overall economic consequences remain uncertain. According to Trump, the new tariffs will be about half the rate imposed by other countries when considering foreign tariffs, trade barriers, and other inequitable practices. In other economic news, ADP data revealed that U.S. private employers added 155,000 jobs in March, exceeding the forecast of 105,000, with robust growth recorded in both service and goods-producing sectors. Nevertheless, other economic reports painted a mixed picture; the ISM PMI released on Tuesday indicated a contraction in U.S. manufacturing activity for March, while job openings in February fell more significantly than anticipated.