U.S. Treasury yields continued to slide on Friday as investor sentiment remained shaky following the sweeping “reciprocal tariff” policy announced by President Donald Trump earlier this week. The move, which imposes a 10% baseline tariff on imports from over 180 countries, has triggered widespread concerns over global trade disruptions and recession risks.
As of 5:07 a.m. ET, the benchmark 10-year Treasury yield fell by over 16 basis points to 3.892%, marking its lowest level since October. The 2-year Treasury yield also dropped significantly, falling more than 20 basis points to 3.523%. Yields move inversely to prices, and such a sharp fall indicates a rush among investors towards safe-haven assets amid economic uncertainty.
The policy rollout, officially signed into effect on Wednesday, has shaken financial markets across continents. Market participants are now closely watching how different countries respond and whether they can strike bilateral agreements to reduce their tariff burdens. Trump has indicated that he is open to negotiations, leaving room for strategic trade discussions.
Meanwhile, investors are also awaiting the U.S. nonfarm payrolls report due later in the day. Economists polled by Dow Jones expect job additions of around 140,000 for March and an unemployment rate holding steady at 4.1%. The data is seen as a key indicator of how the U.S. economy is holding up amid escalating trade tensions and signs of slowing global demand.
Analysts warn that the combination of steep tariffs, market volatility, and weaker economic indicators could raise the odds of a U.S. recession, with some institutions placing the risk at over 60% for the year.
