Trump Backed Down? TACO Trades Reemerge! 10-Year Treasury Yield Plunged at One Point

A seemingly plausible social media post by Donald Trump has once again triggered TACO trading in the market.

The yield on the 10-year U.S. Treasury note, which had hit an eight-month high, plunged more than 10 basis points during the session, touching a low of 4.30%; the U.S. dollar index also turned lower at one point, reaching a more than one-week low.

Trump claimed that the U.S. and Iran were engaged in "very good, productive talks" toward a "comprehensive and thorough solution" to the conflict, but this was later denied by Iran.

Since the war broke out on February 28, the yield on the 10-year U.S. Treasury note has risen by about 45 basis points, a move strikingly similar to the rapid surge around April 2025 when Trump announced "reciprocal tariffs." After the yield broke above 4.60% at that time, Trump announced a suspension of the tariffs on April 9.

Some analysts point out that the 4.50%~4.60% range will once again become an insurmountable "red line"—the U.S. economy cannot bear a yield level of 5%.

Focus on the improvement in pessimistic liquidity expectations for emerging markets after the retreat in U.S. Treasury yields:

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Hong Kong's internet leaders——Hang Seng Internet ETF ChinaAMC (513330.SH)

Alibaba + Tencent + Xiaomi weight over 40%——Stock Connect Internet ETF ChinaAMC (520910.SH)

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