According to Refinitiv, despite the Trump administration announcing a temporary reduction in some tariffs, the US bond market remains mired in a crisis of trust. The yield on 10-year US Treasury bonds has soared to a seven week high, forcing global investors to reassess the reliability of this traditional 'safe asset'. Deutsche Bank analysts pointed out sharply that "the market has lost confidence in US assets" - this verdict became the best footnote to this week's bond market turbulence.

Triple shock wave oscillation market

Policy swings exacerbate uncertainty

Trump's seemingly moderate tariff adjustment actually harbors a hidden agenda: while implementing a 90 day tariff suspension on multiple countries, the tariff rate on goods from major Asian countries has sharply increased to 125%. Carol Schleif, a strategist at Montreal Bank, pointed out that although this policy has brought short-term respite, the long-term uncertainty faced by enterprises has not diminished at all.

The undercurrent of liquidity crisis surges

The basis trading of hedge funds became the trigger for selling. As brokers demanded additional margin, these highly leveraged players were forced to sell off US bonds to close their positions, triggering a chain reaction. The US Treasury market, the cornerstone of the global financial system, is facing a rare liquidity test.

The absence of the United States in international cooperation

The joint stability statement of G7 countries rarely lacks the presence of the United States, and Treasury Secretary Sebastian downplayed market turbulence as temporary fluctuations. This policy of isolation has further shaken the international market's confidence in the United States' response to the crisis.

Summary: The Long Reconstruction After the Collapse of Faith

Although the treasury bond auction on Wednesday (April 9) landed smoothly, the aura of US debt as the "ultimate safe asset" has faded. When policy uncertainty becomes the new normal, when hedge funds are forced to sell and trigger a chain reaction, and when the US government is absent from international coordination - this US debt crisis reveals not only market volatility, but also deep cracks in the global financial order. The road to rebuilding trust is probably much longer than a 90 day tariff truce.