Treasury yields increased as tensions between the U.S. and China heightened over a trade dispute, casting uncertainty on market stability. 10-year Treasury yield climbed above 4.4% while 2-year yield rose slightly. The 30-year yield also moved higher, surpassing 4.98%. Investor anxiety stems from accusations by the U.S. that China violated a trade agreement, which led to retaliatory claims from China alleging a breach of the same pact. This dispute raises concerns about the continuation of the current tariff pause, set to expire this month. Adding fuel to the fire, President Trump announced tariffs on imported steel would be doubled to 50% effective Wednesday. Meanwhile, a legal challenge concerning existing tariffs is ongoing. The court ruled against many of Trump’s tariffs while another appeals court has temporarily halted this ruling, maintaining the duties in place. Experts are struggling to anticipate future trade policy decisions amidst heightened uncertainty, further impacting market sentiment.