The U.S. employment and GDP data are improving, but under the shadow of policies and tariffs, the yield on U.S. bonds is not rising but falling instead

Despite data from the United States indicating that the economy is experiencing a high degree of policy uncertainty, U.S. Treasury yields have lost their upward momentum. The number of people in the U.S. applying for unemployment benefits for the first time each week fell to 224,000 from an upwardly revised 225,000, a sign of resilience in the labor market. The fourth quarter GDP of the United States was revised to grow by 2.4%, while previously it was expected to remain at 2.3%. Price indicators in the GDP report softened slightly. At the same time, markets are digesting news that Trump has announced a 25% tariff on imported cars. The yield on US ten-year bonds is at 4.369%, and two-year bonds are yielding at 4.006%, both slightly lower than before data release.