According to a report by Bloomberg, long-term Treasury yields rose to the highest levels in a month on Thursday due to concerns about tariffs possibly triggering inflation in the US. The 30-year Treasury yield hit 4.75% following the Trump administration's announcement of a 25% tariff on foreign-made cars. This marked the highest level since February 20. The spread between the 30-year and five-year Treasury yields widened significantly, influenced by expectations of Federal Reserve interest-rate cuts in response to a slowing US economy. This situation, combined with factors like ongoing trade tensions and market dynamics, has impacted bond markets. The recent auction of seven-year Treasury notes saw demand falling short of expectations, reflecting increased uncertainty amid trade tensions. Additionally, the potential for a wider fiscal deficit in the future has added upward pressure on long-term Treasury yields. There are differing opinions within the Federal Reserve regarding the impact of tariffs on inflation, with some suggesting that inflation could rise above the Fed's target. Despite expectations of rate cuts at the short end of the yield curve, concerns remain about the potential consequences of current policies on the US economy.