President Trump didn’t seem especially bothered by the epic fall in stock prices following his unveiling of extremely high and far, far loftier than anticipated tariffs in early April. Instead, his main focus is and has long been a different measure: He is obsessed with rates on 10-year Treasury bonds. To Trump, this is the measure that matters because so many things are tied to that benchmark: It’s a big factor in setting car loans, mortgage rates, credit card rates, and also determines the “base rate” that companies pay on their crucial long-term borrowings.
Rob Arnott, founder and chairman of Research Affiliates, a firm that oversees investment strategies for $150 billion in investment funds, puts it bluntly: “Trump cares more about the 10-year Treasury than about the stock market,” he says.
