Charlottesville, VA (CVILLE RIGHT NOW) – Amid swirling market uncertainty, CBS Business Analyst Jill Schlesinger broke down the recent rollercoaster in the bond market following a major tariff announcement from President Trump. “On April 2nd, the President announced this big tariff plan from the Rose Garden,” Schlesinger explained. “On the subsequent two days, stocks fell dramatically, and bonds went up, meaning people were like, I’m scared of the stock market, I’m going to take my money out, I’m going to push it into the bond market.” The rush to bonds reflected a typical investor response during heightened fear, a flight to safety. 

However, the bond market soon experienced a surprising turn. Schlesinger cited several causes for the sudden selling, including investors cashing in bonds to balance stock losses, hedge fund trades unraveling, and significant foreign bond sell-offs. “There was some foreign selling… we don’t know if it was all Chinese, but there was a lot of foreign selling of U.S. bonds,” she said, highlighting how disruptions in the bond market can ripple globally. “It is the bond market that is really the grease, the lubricant to the global economy.” 

In response to mounting pressure, the administration adjusted its approach. Schlesinger pointed to Treasury Secretary Scott Bessent’s influence, noting, “We cannot have the bond market buckle under the pressure of tariffs. And that is exactly when President Trump said, OK, I am blinking. I give 90-day pause.” Additionally, the government rolled back proposed tariffs on electronic goods, signaling a partial retreat from the aggressive stance and attempting to stabilize markets. 

Listen to the full conversation here: