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Trump dodged a disaster from the bond market, but the damage isn’t over yet

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The bond market screamed at President Donald Trump this week to change course on his tariff plans.

Some White House officials insisted that the move to delay the additional tariffs was the plan all along, the bond market made the decision easier.

Some investors turned into "bond vigilantes," demanding higher yields as compensation for risks they were being asked to take in the normally risk-free U.S. Treasury market.

The 10-year yield was slightly lower Thursday but still about 37 basis points, or 0.37 percentage point, above where it started the week .

Bonds have been acting up since September 2024 , when the Federal Reserve enacted a half percentage point interest rate cut despite signs of stubborn inflation.

Other countries have gradually increased their holdings of Treasurys over the past year .

Japan and China have cut back on their holdings by about $100 billion — a small chunk of the $8.5 trillion in total held by foreign nations.