U.S. Treasuries have long been a safe haven for investors the world over, offering security during times of market stress and uncertainty. But now, amid President Donald Trump’s unprecedented tariff bonanza and the possible end of globalization as we know it, that could be changing.
When the stock market sells off, investors in the U.S. and abroad typically find some safety in Treasuries, which are backed by the U.S. government. But something shifted in this week’s stock market chaos: Following the stock rout Tuesday, treasury yields rose Wednesday, the opposite of the trend they normally take when investors are seeking shelter from volatility. When Treasury yields climb, so too do rates on many other consumer products, including auto loans, credit cards, and mortgages.
