Bond markets around the world are surging as investors rush to safer assets, driven by a sharp selloff in global equities following former US President Donald Trump’s recent tariff announcement.
Fears of a potential global economic slowdown and heightened market uncertainty have triggered a steep drop in government bond yields across major economies.
In Europe, Germany’s 10-year bund yield—widely seen as the benchmark for the eurozone—slipped from 2.72% last Wednesday to 2.59% by Monday afternoon.
Just weeks ago, yields had topped 2.9% as markets priced in a surge in fiscal spending plans for Europe’s largest economy.
Since bond yields move inversely to prices, falling yields signal a surge in demand for safer government debt.
Across the Atlantic, US bond markets also reflected investor anxiety.
The 2-year Treasury yield sank to around 3.58%, its lowest level since September 2022.
