The recent rally in Treasuries driven by concerns around US regional bank credit exposures, combined with a resurgence in trade tensions, eased on Friday as lender shares stabilised and comments on China by US President Donald Trump steadied the broader stock market. The reversal tracked an early rebound in US stocks after Fox Business televised part of an interview with Trump in which he said the high tariffs he has threatened to impose on China aren’t sustainable. However, bonds have walked a clear bullish (yields lower) through 2025.
- The “Risk-off” tone that washed through markets last week sent US 5-year yields to their lowest level in 12-months.
