LONDON —Long-dated Treasury yields post their biggest one-day fall since mid-April on Tuesday, as 30-year bonds mimicked a steep price rally in longer-term Japanese debt and as investors mulled the latest about-face in US tariff policy.
After threatening the European Union on Friday with a 50 percent tariff on all goods entering the US from June 1, President Donald Trump back-pedalled following a weekend call with European Commission President Ursula von der Leyen, pausing the hike until July 9.
The yield on 30-year bonds, which were at the epicentre of the market sell-off in April following Trump’s initial raft of tariffs, were down 8.4 basis points in early London trading at 4.953 percent.
They last fell that much in a day on April 2, Trump’s original “Liberation Day”, when he unveiled his tariffs.
Thirty-year yields, which affect anything from US government borrowing costs to home mortgage rates, are still just below 5 percent, near their highest since October 2023.
Japanese 30-year debt, which was punished last week after a weak auction reflected investor concern about the country’s creaking finances, got a reprieve on Tuesday that pushed yields down by nearly 20 basis points.
Japan will consider trimming issuance of super-long bonds in the wake of recent sharp rises in yields for the notes, two sources told Reuters on Tuesday, as policymakers seek to soothe market concerns over worsening government finances.
