US Treasuries Rally as Worries Over Trump Tariffs and Fed Ease

Long-maturity Treasury yields declined Wednesday as part of a broader rally in dollar-denominated risk assets, after US President Donald Trump said he wasn’t inclined to fire the head of the Federal Reserve and suggested tariffs on Chinese imports could drop.

Yields on 30-year bonds — the longest-maturity Treasury security — fell as much as 17 basis points to just under 4.71%, 10-year yields as much as 15 basis points, before paring their declines. Shorter-maturity yields, more closely tied to the interest rate set by the Fed, rose after March new home sales data were stronger than economists estimated despite higher US mortgage rates. Good demand for the monthly auction of five-year notes helped allay concerns about waning foreign interest in owning US assets.