Analysis: US Treasury Secretary's Remarks Counteract Trump's Efforts to Lower US Bond Yields

According to The Kobeissi Letter analysis, after U.S. Treasury Secretary Besent stated that "the 90-day pause proposed on April 2 was based on sincere negotiations, and Trump believes the quality of the EU's proposal is not high, hoping this will motivate the EU to take action," the yield on the U.S. 10-year Treasury note rose by 6 basis points.

When the market turned downward due to Trump's announcement of a 50% tariff on the EU and a 25% tariff on Apple, Besent heavily promoted the trade "agreement" on Fox News. It seems he might not have received the memo that the purpose of announcing tariffs was to lower U.S. Treasury yields, and Besent just offset the yield decrease Trump wanted. However, the S&P 500 index has now fallen 200 points from its peak, and the headline news of the "trade agreement" has not helped lower U.S. Treasury yields.