Yields Jump After Another 90 Day Tariff Pause

10yr yields were up 8bps overnight to the highest levels since April 11th after weekend trade talks between the US and China resulted in a 90 day pause on a vast majority of recently announced tariffs. This is a much bigger result than the market was expecting and it paves the way for endgame to be nearly unrecognizable relative to the April 2nd announcements. That said, markets are still left to wonder where everything will settle out after all the pauses and negotiations are over. Tariffs are still likely to be higher than they were before, and that means the Fed and the market are still waiting to see how the trade offs between inflation and revenue balance out (as well as any fall-out on economic growth and foreign central bank demand for Treasuries).