Treasury Yields Surge As Court Strikes Down Most Of Trump Tariffs

Treasury yields jumped Tuesday as a federal appeals court struck down most of Trump’s global tariffs, raising the prospect of refunds that could stretch U.S. finances, according to CNBC. The 10-year yield rose over 6 basis points to 4.287%, the 30-year climbed to 4.978%, and the 2-year moved nearly 3 basis points higher to 3.652%. The court ruled 7-4 that Congress alone can impose broad tariffs, though duties remain in place for now as Trump appeals to the Supreme Court. Bond investors shifted from inflation concerns to viewing Trump’s tariffs as a revenue boost, with the duties expected to generate $172.1 billion in 2025 to help offset the growing deficit. Analysts warned that if upheld, the ruling could trigger tariff refunds, increased Treasury issuance, and higher yields, adding pressure to the deficit. Investors are also awaiting August jobs data due Friday, which could shape the Federal Reserve’s upcoming interest rate decision.