Trump's tariffs are further increased! U.S. Treasury yields rise, market focuses on signals from the State of the Union address

February 24 News: According to CNBC, U.S. Treasury yields edged higher on Tuesday as investors assess the latest developments in Trump’s tariff policies and their impact on the economy and inflation outlook, while also paying attention to policy signals that may be conveyed in his address to the nation later that evening.

Data shows that the 10-year U.S. Treasury yield rose about 1 basis point to 4.042%, the 30-year yield increased to 4.704%, and the 2-year yield climbed nearly 2 basis points to 3.457%. In the bond market, one basis point equals 0.01 percentage points, and yields move inversely to bond prices. These yield movements indicate that the market is seeking a new balance between safe-haven demand and inflation concerns.

On the policy front, last week the U.S. Supreme Court ruled 6-3 that the Trump administration improperly invoked the International Emergency Economic Powers Act when implementing “reciprocal” tariffs. However, Trump subsequently announced an increase in global tariff rates from 10% to 15%, effective immediately, and hinted that more tariff hikes could be introduced in the future. This stance has heightened expectations of global trade tensions and refocused attention on U.S. Treasury yields and inflation expectations.

On Monday, Trump further warned that if some countries adopt evasion strategies following the ruling, they could face higher tariffs and more severe consequences. As a result, markets remain cautious about trade policy uncertainties, with funds fluctuating between risk assets and safe-haven assets. Deutsche Bank noted that amid heightened geopolitical risks due to tensions between the U.S. and Iran, risk aversion has increased, supporting U.S. Treasury prices. However, inflationary pressures from tariffs limit the downside potential for yields.

As Trump’s address to the nation approaches, investors will focus on his statements regarding tariff policies, fiscal strategies, and economic growth prospects. Changes in the U.S. Treasury yield curve, global trade policy uncertainties, and rising geopolitical risks are becoming key variables for asset allocation and macroeconomic strategy adjustments in 2026.