U.S. Trade Court Ruling Sparks Treasury Yield Surge, Macro Uncertainty Looms

U.S. Treasury yields surged after a federal court ruled President Trump’s tariff measures unlawful, with the 30-year yield breaching 5% and the 10-year jumping to 4.50%. The Court of International Trade found the administration overstepped its authority by invoking emergency powers for broad trade levies, though sector-specific tariffs remain unaffected. The ruling amplifies bond market sensitivity to policy shifts—the 10-year yield has climbed 10 basis points in two sessions.

Global risk appetite waned as the Dollar Index (DXY) rallied to 100 from 98, reflecting haven demand amid escalating U.S.-China tensions. Washington escalated tech decoupling efforts through chip export bans and visa restrictions, signaling prolonged macroeconomic turbulence. Market volatility underscores the fragile equilibrium between trade policy and capital flows.