US Treasuries fall after Supreme Court scraps President Trump's tariffs

Treasuries extended declines after the Supreme Court struck down President Donald Trump’s sweeping global tariffs that have improved the US fiscal position this year. 

Yields rose broadly following the court’s decision with the rate on the benchmark 10-year note climbing to 4.10%. 

The court said the administration had exceeded its authority when it imposed reciprocal tariffs on trading partners. The revenue generated from those levies had slowed the growth in the supply of government debt, helping keep long-dated yields in check. 

“The knee-jerk reaction to the Supreme Court decision sees the USD lower and duration under a bit of pressure,” said Bipan Rai of BMO Asset Management Inc. “We don’t see this as a dramatic shift over the long-term as the White House is likely to look at other measures as an offset to revenue loss.” 

 

While the ruling was largely anticipated by investors, it highlighted the prospect that the Treasury Department will move more quickly toward larger auction sizes, both to finance a wider budget deficit and possibly to finance refunds that might be ordered as a result of the ruling.  (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)