Alarm inside the Treasury Department over signs of distress in the US government bond market played a key role President Donald Trump’s decision to hit pause on his “reciprocal” tariff regime, according to three people familiar with the matter.
Treasury Secretary Scott Bessent raised those concerns directly to Trump in their meeting that preceded the announcement, underscoring the concerns shared by White House economic officials who had briefed the president on the accelerating selloff in the US Treasury market earlier in the day.
The market turmoil has rattled administration officials and market participants because it’s the exact opposite of what historically occurs in moments of global economic crisis or volatility. US Treasuries are considered the safest corner of the market. It’s the place investors across the globe flee toward with the assurance that the dominant US role in the global financial system will ensure asset safety.
But at the same moment Trump’s tariffs were causing foreign leaders to question the durability of longstanding US security and economic alliances, the rapid selloff of safe-haven assets raised concern that financial markets have similar concerns.
Trump acknowledged he’d been watching the bond market, telling reporters after the announcement the market is “very tricky.”
A spike in yields in the 10-year benchmark was of particular concern for Treasury officials. When the yields rise, US consumers face higher costs on things like mortgage rates for homes and financing costs for businesses.
Treasury Secretary’s Growing Concern Over Bond Market Turmoil Helped Drive Trump Pause, Sources Say
Fox Business' Charlie Gasparino: "Let's be clear what happened, who capitulated here and why ... it is the White House who capitulated based on everything I hear and all my sources, and the reason why is because of the bond market and what happened last night"
— Lis Power (@lispower.bsky.social) 9 April 2025 at 20:46
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So basically a combination of two things, Trump pissed his pants at the bond market situation and fucking Bessent "saved" America's ass but Trump also clearly gave his rich buddies a heads up before announcing the pause.
