The Dow Jones (DJIA) is deep in negative territory as Treasury yields rise amid a warning from the World Trade Organization (WTO). “We’re experiencing the largest disruption to global trade rules, unprecedented in the past 80 years,” said WTO Director-General Ngozi Okonjo-Iweala on Tuesday in an interview with Reuters.
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Okonjo-Iweala added that the WTO’s most-favored-nation (MFN) policy, which refers to members treating each other equally on trade terms, has fallen from the previous level of 80% but remains above 50%.
Treasury Yields Rise on Fed, Tariff Uncertainty
Treasury yields are on the rise as the market digests Fed and tariff uncertainties. The Fed’s independence has been put to the test after President Trump attempted to fire Fed Governor Lisa Cook for alleged mortgage fraud. Cook has filed a lawsuit against Trump in order to maintain her position.
In addition, the possibility that the U.S. may have to refund its tariff revenue has helped push yields higher. On Friday, a federal appeals court ruled 7-4 that most of Trump’s tariffs were illegal, although they will remain in place for the time being as the ruling is appealed to the Supreme Court.
“If this ruling is upheld, refunds of existing tariffs are on the table which could cause a surge in Treasury issuance and yields,” wrote Raymond James managing director Ed Mills.
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