Bond Yields Plummet Amid Global Economic Turmoil
U.S. bond yields fell on Monday as investors digested various economic measures and developments coming out of Washington.
The U.S. Treasury's plans to increase buybacks of long-dated bonds, new sanctions to isolate Iran, and the threat of new tariffs on Canada weighed on tech stocks, which were down 1.6% overall.
Treasury Secretary Scott Bessent faces a credibility problem, according to some observers, as his recent surprise interventions in the FX and bond markets have unnerved investors. By his own stated goals of reducing the deficit and lowering bond yields, he is falling short.
The dollar rose 0.2%, its best day in two weeks, with the Canadian dollar being the biggest G10 loser on new tariffs. Bitcoin extended its rally, up 2% to reach $80k.