<p>Panicked investors are rushing to buy U.S. Treasuries, worried that Trump's trade war will trigger a global economic recession—at least for now, they are not concerned about the risk of punitive tariffs potentially causing another round of inflation. After U.S. Treasury prices rose, bringing the 2-year yield to its lowest level since 2022, traders are preparing for further increases in bonds, and expect the Federal Reserve to cut interest rates aggressively to prevent an economic slowdown. (Bloomberg)</p>

<p>Investors, concerned that Trump's trade war may trigger a global economic recession, have been buying U.S. Treasury bonds, leading to an increase in bond prices and a drop in the 2-year yield to its lowest level since 2022. Traders expect bonds to rise further and predict that the Federal Reserve will take aggressive rate-cutting measures to prevent economic stagnation</p>

With recession in the front and inflation in the back, panicked investors can only retreat into U.S. Treasuries, fighting while fleeing