U.S. Treasury yields reach Trump threshold amid geopolitical tensions

ME News reports that on July 24 (UTC+8), U.S. Treasury yields rose significantly due to the combined impact of macroeconomic factors and geopolitical tensions. The 10-year U.S. Treasury yield climbed to approximately 4.69%, reaching its highest level since January 2025 and a rare level since Trump’s second term began. Previously, during trade disputes or geopolitical events, Trump often reversed course when yields surged, softening policies through delays or exemptions to calm markets. Market participants have labeled this pattern “TACO” (Trump Always Chickens Out). However, whether Trump will repeat TACO this time remains to be seen. On one hand, the U.S. Trade Representative’s Office (USTR) announced on July 23 (local time) that it would impose tariffs of 10%–12.5% on 60 economies. On the other hand, the primary driver of the current yield increase is geopolitical conflict; even if Trump were willing to concede, Iran’s hardline stance may not respond favorably. Additionally, with midterm elections approaching, Trump needs to maintain a strongman image abroad to project a “winner” persona to domestic voters. Consequently, he has already lost the initiative on Iran, and his room for TACO-style maneuvers is constrained by domestic political pressures. In summary, under mounting domestic and international pressures, how Trump adjusts his policy moving forward warrants continued attention. (Source: BlockBeats)