Treasuries tumble toward worst selloff since 2019 repo blowout

Treasuries tumble toward worst selloff since 2019 repo blowout
A sharp exodus from US 10-year debt raises questions over the continued appeal of the nation's debt for haven-seeking investors.
APR 11, 2025
By  Bloomberg

Treasuries fell, as the $29 trillion market heads toward its worst weekly loss since turmoil in the plumbing of the US financial system forced action from the Federal Reserve in 2019. 

The slide extended Friday, lifting yields on benchmark 10-year notes as much as 10 basis points to the highest level since February, surpassing the previous tariff-induced peak. US government debt lost more than 2% this week as of Thursday’s close, the biggest drop since a liquidity crisis broke out in the market for repurchase agreements, or repos, in September 2019. 

Bonds have been whipsawed as President Donald Trump announced sweeping global tariffs, then walked most of them back — eroding appetite for US assets and prompting questions about whether the nation’s debt remains a haven. This week’s selloff fueled speculation about blowups in hedge fund trades or a exodus of foreign investors from Treasuries. 

“The issue facing the markets is a loss of confidence in US policy,” said Kathy Jones, chief fixed-income strategist at Charles Schwab. “The abrupt changes in tariff policy have caused leveraged trades to come undone and sent buyers to the sidelines.”

She pointed to a sharp drop in the dollar — which tumbled this week by the most since 2022 — as an indication that overseas investors are pulling back from US assets, likely embracing Europe for its relative stability. The selling in US bonds can go on for longer, Jones said. 

Investors flocked to bunds to shelter from the broader turmoil, leaving German yields largely unchanged in the week, while the rate on US 10-year debt surged more than 40 basis points. That’s the biggest underperformance of Treasuries compared to bunds since at least 1989, according to available data.  

The run of declines extended in the US on Friday, with seven- and 10-year yields climbing as much as 10 basis points. Those on the 30-year bond approached 4.96% after briefly soaring above 5% earlier this week for the first time since January. The longest yield has climbed about 50 basis points since last Friday.

Markets are pricing in the possibility that the Fed will deliver at least three quarter-point interest rate cuts by the end of the year, with the chance of a fourth.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.