US Treasuries experienced a second week of losses with concerns over inflation resurfacing, leading to rising yields across the curve.
Investors are worried about inflation due to Trump's tariff threats and increasing oil prices, despite expectations of the Federal Reserve cutting interest rates later this year.
Government bond volatility has decreased, with the ICE BofA MOVE Index falling to its lowest level since January 2022.
Interest-rate swaps suggest potential Fed rate cuts this year, with uncertainty about the timing, while policymakers are monitoring inflation concerns amid tariff threats.