US Treasury yields are on the rise despite a tentative recovery in the stock market. Investors may be shifting from bonds to cash, possibly influenced by fears of a recession and a broader market selloff. The 10-year Treasury yield has remained above 4%, hovering around 4.2%, while the one-year yield briefly reached 4% before falling to 3.9%. Concerns about foreign bond holders, particularly amid escalating trade tensions, also loom. Japan leads as the largest holder of US Treasurys, with $1.08 billion, followed by China and the UK. The potential offloading of bonds by these countries could be a strategic move in response to tariffs. The Treasury will report on bond holdings later this month, providing further insight into these trends.

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