Tariff Ruling Fuels Bond-Market Angst by Hitting US Deficit

The Supreme Court decision striking down President Donald Trump’s sweeping global tariffs reverberated across the $30 trillion US bond market by threatening to increase the government’s budget deficit and pour fuel on an economy already contending with elevated inflation.

The drop was led by longer-dated bonds most exposed to the fiscal risks in the years ahead, which pushed 30-year Treasury yields up as much as 6 basis points to 4.75%, before paring the gain. The dollar dropped, snapping a four-day advance.