Summary

US government bonds are experiencing a major sell-off amid market panic over Donald Trump’s renewed tariff war with China, including 104% levies on Chinese goods.

The 10-year Treasury yield surged to 4.42%, with the 30-year briefly exceeding 5%, marking the largest intraday moves since Trump’s 2016 election.

Analysts warn of a potential emergency Fed rate cut. Global markets slumped, while China vowed retaliation. UK gilt yields also spiked, worsening borrowing conditions.

China’s bond-holding strategy remains unclear, raising further concerns for US financial stability.