Treasuries Move Sharply Higher Amid Renewed Tariff Uncertainty

(RTTNews) - Treasuries showed a significant move to the upside during trading on Monday, more than offsetting the modest weakness seen during last Friday's session.

Bond prices advanced early in the session and climbed more firmly into positive territory as the day progressed. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slumped 5.7 basis points to 4.029 percent.

Treasuries benefitted from their appeal as a safe haven amid renewed trade uncertainty following the U.S. Supreme Court's decision to strike down most of President Donald Trump's global tariffs.

Trump announced in a post on Truth Social on Saturday that he would be raising worldwide tariffs to the "fully allowed" and "legally tested" 15 percent level from the 10 percent he announced shortly after the ruling.

"During the next short number of months, the Trump Administration will determine and issue the new and legally permissible Tariffs, which will continue our extraordinarily successful process of Making America Great Again - GREATER THAN EVER BEFORE!!!" Trump said.

While a fact sheet from the White House acknowledged the president is only allowed to impose the tariffs for a period of 150 days without congressional approval, Trump claimed in a subsequent post that he does not need to go back to Congress for approval.

Trump also said any Country that wants to "play games" will be met with a "much higher Tariff, and worse, than that which they just recently agreed to."

Meanwhile, the European Commission issued a statement requesting "full clarity" on the steps the U.S. intends to take following the Supreme Court decision.

The European Commission called the current situation "not conducive" to delivering "fair, balanced, and mutually beneficial" transatlantic trade and investment, as agreed to by both sides and spelled out in the EU-U.S. Joint Statement of August 2025.

"A deal is a deal," the European Commission said. "As the United States' largest trading partner, the EU expects the U.S. to honour its commitments set out in the Joint Statement - just as the EU stands by its commitments."