On April 12, U.S. Treasury yields soared to their highest level since February this year, with liquidity deteriorating as the $29 trillion U.S. Treasury market plunged in intensified. The yield on the 10-year U.S. Treasury bonds climbed 0.19% to 4.58%, and U.S. Treasury bonds, traditionally regarded as the ultimate haven for the global financial system, are slumping into a deeper downturn.

U.S. Treasury yields were less than 3.9% earlier this week, but Trump's capricious tariff policy shook market confidence in U.S. policymaking and the economy, triggering investors to flee a large number of U.S. assets. "If you are a foreign holder, there is really pressure to sell U.S. Treasury and corporate bonds globally. What the world is really worried about is that they don't know what Trump is going to do."

According to the Bloomberg Treasury Index returns, Friday’s sell-off has resulted in its worst week since 2019, along with a decline in the dollar. "We are worried because the trend you're seeing shows that this is not a normal sell-off, and people have completely lost confidence in the world's strongest bond market," said an executive in a European bank's bulk service.