TOKYO — US Treasury yields jumped during Asian hours on Thursday after a US federal court blocked President Donald Trump’s “Liberation Day” tariffs from going into effect, buoying market sentiment and dimming demand for safe-haven assets.
Bonds, gold, and traditional haven currencies such as the yen and Swiss franc were sold off after the little-known Manhattan-based Court of International Trade ruled on Wednesday that President Trump overstepped his authority by imposing broad duties on imports from countries with trade surpluses against the United States.
Minutes later, the Trump administration filed a notice of appeal and challenged the court’s authority to block the tariffs.
The yield on the benchmark 10-year Treasury note gained as much as 4.4 basis points (bps) to 4.523 percent, and was at 4.497 percent.
Two-year yields leapt as much as 6 bps to 4.052 percent, and 30-year yields rose about 2 bps to 4.999 percent.
US S&P 500 futures rallied 1.7 percent and the dollar strengthened 0.6 percent against the yen and 0.7 percent versus the franc, while gold retreated 0.8 percent.
“The knee-jerk reaction for equities to rally and bond yields to back up on the tariff pause makes sense. However, with tariffs now in the appeal process and likely heading to the Supreme Court, uncertainty is back,” said Prashant Newnaha, senior Asia-Pacific rates strategist at TD Securities.
