Trump’s Tariff Pause Spurs Bond Market Recovery

2 mins mins

Key Points:

Trump postpones tariffs, impacting bond and crypto markets.
Bond yields stabilize, crypto market sees volatility.
U.S. officials and market leaders express mixed reactions.

Donald Trump announced the suspension of planned tariffs on imports, leading to a rapid recovery in bond markets on Wednesday at the White House.

The temporary halt in tariff implementation is calming financial markets, as long-term bond yields stabilize after previous surges.

Trump’s Tariff Delay Calms Bond Market Volatility

Donald Trump’s decision to delay new trade tariffs on Chinese goods has sparked significant activity across the market landscape. Previously announced tariffs included a 104% levy on Chinese imports, raising global economic concerns. By choosing to pause these measures, Trump claimed, “The bond market right now is beautiful.” source.

Following this announcement, U.S. 10-year Treasury yields, which had surged as high as 4.5%, are now witnessing a softer, more stable trend at 3.9%. This stabilization reflects a temporary easing of investor anxiety about potential economic ramifications associated with trade tensions.

Reactions from key financial players reveal divisions. Hedge fund magnate Bill Ackman criticized Trump’s policy, asserting, “Our stock market is down, bond yields are up, and the dollar is declining. These are not the markers of successful policy” source. Meanwhile, U.S. Treasury Secretary Scott Bessent suggested the current financial climate represents a “normal deleveraging” phase, implying no immediate systemic risk concerns.

Crypto Volatility Mirrors 2022 Bond Market Crisis

Did you know? The bond market’s reaction to tariff announcements parallels the volatility experienced during the 2022 Britain bond market crisis, illustrating the globalization of financial impacts.

Bitcoin (BTC) valued at $82,386.77 with a market cap of $1.64 trillion, showcases continuing volatility. This week saw a 7.93% increase within 24 hours, countered by a 4.70% decline over seven days, based on CoinMarketCap. Further changes are monitored due to macroeconomic fluctuations and bond market shifts.

bitcoin-daily-chart-236 — Bitcoin(BTC), daily chart, screenshot on CoinMarketCap at 19:36 UTC on April 9, 2025. *Source: CoinMarketCap*

Analysts from the Coincu research team predict potential financial shifts with possible advantages for cryptocurrencies like Bitcoin during economic stress, as mentioned in insights by Standard Chartered.