Government bonds rallied across the globe on Tuesday as risk-off sentiment gripped equity markets and saw investors piling into safer assets.
Stocks listed in Europe and Asia lost ground and U.S. stock futures dropped as investors weighed the potential fallout from renewed U.S.-China trade tensions after President Donald Trump slapped new 100% tariffs on Chinese goods. The levies, which will apply to Chinese imports from Nov. 1, came in response to Beijing tightening export controls on critical rare earth minerals.
Trump’s initial announcement on Friday saw $2 trillion in value wiped off of stock markets.
Government bonds rallied across the globe on Tuesday. The yield on the U.K.’s benchmark 10-year government bonds
, known as gilts, lost 8 basis points by 1:46 p.m. in London (8:46 a.m. ET), while yields on U.S. 10-year Treasurys
