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This Is the Biggest Treasury Selloff Since the Pandemic
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April 9, 2025
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6:02Now PlayingThe exodus from longer-dated US Treasuries accelerated, fueling the biggest selloff since 2020 in what are supposed to be the world’s safest assets.
The yield on 30-year Treasuries briefly soared above 5% with investors increasingly worried President Donald Trump’s tariffs, which kicked into effect today, will send the economy into recession and limit the Federal Reserve’s ability to respond by also igniting inflation. While the selling eased into the European trading day, speculation continued to swirl about the reasons investors were turning their backs on US sovereign debt.
“This is a fire sale of Treasuries,” said Calvin Yeoh, portfolio manager at hedge fund Blue Edge Advisors Pte. who is selling 20 to 30-year Treasuries futures. “I haven’t seen moves or volatility of this size since the chaos of the pandemic.”
In the past three trading sessions, the 30-year yield has jumped by about 40 basis points, or 0.4 percentage point, the biggest increase since November 2020. On Wednesday, the long-term rate was up two basis points to 4.79%, having earlier surged as much as 25 basis points.
The surge in Treasury yields, which affect everything from mortgage costs to loan rates, draws into question Treasury Secretary Scott Bessent’s goal of bringing down borrowing costs to help consumers and companies. US bonds have long been the bastion in portfolio construction, with investors counting on America’s stability and wealth to anchor their holdings. Wednesday’s sale by the Treasury of 10-year notes will now be closely-watched as a further test of sentiment.
For more on the selloff, Tom Keene and Paul Sweeney speak with Viktor Hjort, Global Head of Credit Strategy at BNP Paribas, and Damian Sassower, Bloomberg Intelligence Chief EM Strategist.
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