“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” the president posted on social media.

European and Japanese government bonds are looking more attractive than U.S. debt for investors in those countries, where yields are up and the policy outlook appears more stable.

The dispute between Elon Musk and Peter Navarro comes as many companies, nations, and trade groups are expressing frustration over the uncertainty around how to best negotiate a reduction to Trump’s tariffs.

UBS expects the premium investors require over U.S. Treasuries rates to reach 160–170 bps for high-grade debt and 600–650 bps for junk debt by midyear.

Given the steep plunge in Tesla shares this year, the AFT president is urging money managers to “safeguard retirement assets” and urgently review their current holdings in electric carmaker Tesla, which is a target of political protests amid growing animosity for the brand.

“While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent.”

The extra yield investors demand to own junk bonds instead of Treasuries widened by 45 bps yesterday, to 386 bps.

The actual formula used isn’t how the White House initially signaled the calculations would be done.