The 10-year treasury (^TNX) yield fell below the the 4% threshold on Friday morning as investors flocked to bonds amid trade war and recession fears.
The benchmark yield fell as much as 15 basis points to 3.88%, the lowest level since President Trump took office after China announced retaliatory tariffs on US imports in reaction to President Trump’s wide-spread duty announcement earlier this week.
Fears of a global slowdown or recession gripped investors after Trump announced tariffs on its trading partners, sending the stock market into a tailspin.
Trump’s announcement on Wednesday brought levies against Chinese made imports to 54%. Analysts believe those levies will impact a variety of goods, including clothing, toys, and electronics.
