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‘This is Not Normal’: Trump’s Tariffs Upend the Bond Market

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‘This is Not Normal’: Trump’s Tariffs Upend the Bond Market

The bedrock of the financial system trembled on Friday, with government bond yields rising sharply as the chaotic rollout of tariffs shook investors’ faith in the pivotal role played by the United States in the financial system.

U.S. government bonds, known as Treasuries because they are issued by the U.S. Treasury, are backed by the full faith of the American government, and the market for Treasuries has long been deemed one of the safest and most stable in the world.

But the Treasury market’s erratic behavior all week has raised fears that investors are turning against U.S. assets as President Trump’s trade war escalates.

The yield on a 10-year Treasury, which underpins corporate and consumer borrowing and is arguably the most important interest rate in the world, rose roughly 0.1 percentage points on Friday. Friday’s rise added to sharp moves throughout the week that have taken the yield on the 10-year Treasury from less than 4 percent at the end of last week to around 4.5 percent this week.

These increases may seem small, but they are large moves in the Treasury market, prompting investors to warn that Mr. Trump’s tariff policies are causing serious turmoil. It matters to consumers as well. If you have a mortgage or car loan, for example, then the interest rate you pay is related to the 10-year yield.

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Ten-year treasuries are also considered a safe haven for investors during time of volatility in the stock market, but this week’s sharp rise in yields have made this market unusually perilous.

Yields move in the opposite direction to prices. So as yields have been rising unexpectedly, investors around the world that hold trillions of dollars of Treasuries are seeing their value suddenly decline.

Rising yields on the 30-year long bond have also been historic, analysts said. This bond is considered a particular refuge for pension funds and insurance companies, because they have liabilities that stretch into the future, so they need assets that match that.

“This is not normal,” Ajay Rajadhyaksha, global chairman of research at Barclays, wrote in a report on Friday. Grappling for an explanation, Mr. Rajadhyaksha pointed to speculation by Asian investors who are selling in response to tariffs, as well as the possible unwinding of highly leveraged bets in the Treasury market. “Whatever the reason, right now, bond markets are in trouble,” he said.

The yield on the 30-year Treasury bond rose 0.44 percentage points this week, trading roughly flat on Friday. The movement signaled a sharp shift in demand for the long bond. The Federal Reserve fixes a few very short-dated interest rates that then ripple out across financial markets. But the further away from the Fed’s rates you go, the less impact the central bank has.

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“Once you get to the long end, they aren’t really in the picture,” said Matt Eagan, a portfolio manager at fund manager Loomis, Sayles & Company. “There are fewer natural buyers in that market. Small changes to supply and demand can lead to big swings.”

Another worrying sign this week has been the decline in the U.S. dollar, which tumbled 0.8 percent against a basket of currencies representing its major trading partners on Friday. Every currency of the group of 10 nations rose against the dollar, further pointing to a move away from U.S. assets.

A weaker dollar at the same time as government bonds and stocks are selling off is a rare combination, given the dollar’s role as the global financial system’s safe haven.

Despite the monthslong slump in the stock market, which is approaching a bear market, it was the bond market looking “queasy” that Mr. Trump said prompted him on Wednesday to pause the worst of his tariffs for most countries.

“The big risk elephant in the room is the Treasury market,” Mr. Eagan said.

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For investors, the moves echoed the wild price swings from the pandemic-induced sell-off in March 2020 and before that, a bout of volatility in September 2019. Those events spooked investors and prompted rapid intervention from the Federal Reserve to stabilize the market.

This time, the Fed is in a trickier position. The inflationary effect of tariffs warrants the central bank keeping interest rates high. But it would be more supportive to financial markets and economic growth to lower interest rates, something the central bank has so far resisted doing.

On Friday, a widely watched measure of consumer sentiment fell to its lowest level in roughly three years. Expectations for where inflation will be in 12 months time soared, underscoring the Fed’s challenge.

In the meantime, this week’s chaotic implementation, then partial reprieve, on global tariffs, followed up by an escalating trade war between the U.S. and China, has left global investors unsure of relying on the Treasury market, or even the U.S. dollar, as a source of safety and stability.

Foreign investors are among the biggest holders of U.S. government debt. Japan is the largest, based on official data, with more than $1 trillion worth of U.S. Treasury debt. The next largest in China, which holds $760 billion of Treasuries, having already reduced its holdings by more than a quarter of a trillion dollars since 2021.

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“WAKE UP PEOPLE,” Andrew Brenner, a veteran bond trader and head of international fixed income at National Alliance Securities, wrote in a brief email. “THIS IS FOREIGN MONEY EXITING THE TREASURY MARKET DUE TO TARIFF POLICIES.”

Some analysts and investors fear that a more rapid pace of selling by foreign investors could push U.S. Treasury yields, and with them U.S. interest rates, even higher.

“Picking fights with major trading partners who also finance your debt becomes especially risky with a wide fiscal deficit and no credible plan to rein it in,” Mr. Eagan said.

Alternatives around the world are also benefiting. Germany has recently announced plans to invest in its military, financed through new debt. The country’s bond market is seen as Europe’s benchmark and is often compared to the Treasury market. As concerns about tariffs initially took hold last week, the spread, or difference, between the yield on 10-year German bunds and 10-year Treasuries shrank, as investors sought out the U.S. haven.

That has quickly reversed.

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Disney’s ABC challenges FCC, escalating fight over free speech

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Disney’s ABC challenges FCC, escalating fight over free speech

Walt Disney Co.’s ABC is forcefully resisting Federal Communications Commission efforts to soften the network’s programming, accusing the federal agency of an overreach that violates 1st Amendment freedoms.

Last week, the FCC took the unusual step of calling in the licenses of eight Disney-owned television stations for early review. The move — widely interpreted as an effort to chill the network’s speech — came a day after President Trump demanded that ABC fire late-night host Jimmy Kimmel over a joke about First Lady Melania Trump.

The FCC separately has taken aim at ABC’s daytime discussion show, “The View,” which delves deeply into politics.

The FCC has questioned whether the show, which prominently features Trump critics Whoopi Goldberg and Joy Behar, could continue toclaim an exemption to rules that require broadcasters to provide equal time for opponents of political candidates.

In its response this week to the FCC, Disney’s Houston television station raised the stakes in “The View” dispute, calling the commission’s actions “unprecedented” and “beyond the Commission’s authority.” The ABC station’s petition for a declaratory ruling said “The View,” has long qualified as a “bona fide” news interview program with freedom to conduct interviews of legally qualified political candidates.

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“The Commission’s actions threaten to upend decades of settled law and practice and chill critical protected speech, both with respect to The View and more broadly,” the Houston station KTRK-TV said in the filing.

The network’s firm stance sets up a clash with the Trump administration, including the president’s hand-picked FCC Chairman Brendan Carr, who has made no secret of his disdain for Kimmel and other ABC programming. Earlier this year, Carr announced that decades-old exemptions from the so-called “equal time rule,” for some programs, including “The View,” were no longer valid.

In a statement, the FCC said it would “review Disney’s assertion that ‘The View’ is a ‘bona fide news program’ and thus exempt from the political equal time rules,” according to a spokesperson.

“Decades ago, Congress passed a law that generally prohibits broadcast television programs from putting a thumb on the scale in favor of one political candidate over another,” the spokesperson said. “The equal time law encourages more speech and empowers voters to decide the outcome of elections.”

ABC’s strenuous arguments mark a turning point for the Disney-owned outlet.

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In December 2024, a month after Trump was elected to a second term, the network quickly settled a lawsuit over statements made by news anchor George Stephanopoulos that Trump found offensive. ABC agreed to pay Trump $15 million to end his legal fight — sparking an outcry among free speech advocates, who accused the network of caving on a case it may have won.

But, over the past year, the network has weathered several storms, including a threat by Carr in September to punish ABC if it didn’t muzzle Kimmel for comments he made in the wake of conservative activist Charlie Kirk’s death. ABC briefly benched Kimmel to allow tensions to cool but, during the week his show was off the air, protesters loudly bashed Disney, demanding the legendary company stand up for free speech.

Thousands of consumers canceled their Disney+ and Hulu subscriptions in protest.

Protesters swarmed Hollywood Boulevard, protesting ABC’s move to bench Jimmy Kimmel in September over comments he made about the shooting of right-wing influencer Charlie Kirk.

(Genaro Molina/Los Angeles Times)

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Some conservatives, including Sen. Ted Cruz (R-Texas) and commentator Ben Shapiro also criticized Carr’s handling of 1st Amendment issues.

“The days of the FCC as a paper tiger are numbered,” the FCC’s lone Democrat, Anna M. Gomez, said Friday in a statement. “What the public will remember is who complied in advance and who fought back. I’m glad Disney is choosing courage over capitulation.”

The high-profile dispute presents an early challenge for Disney Chief Executive Josh D’Amaro, who succeeded longtime chief Bob Iger in March.

ABC has asked for the full commission — a three member panel of Carr, Gomez and Commissioner Olivia Trusty, a Republican — to rule on the equal time exemption for “The View.” ABC said that, in 2002, it received a ruling from the FCC that granted the exemption, and the show’s format has not changed. “The View” is produced by ABC News.

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“Some may dislike certain — or even most — of the viewpoints expressed on The View or similar shows,” the station said in its filing. “Such dislike, however, cannot justify using regulatory processes to restrict those views.”

ABC described a logistical nightmare of providing equal time for political opponents by pointing to California’s crowded primary field of gubernatorial candidates. “Affording equal time would mean accommodating over 60 legally qualified candidates, regardless of their perceived newsworthiness,” the station wrote.

The network said it makes show bookings based on newsworthiness, not partisan politics. It also noted it has invited politicians from both sides of the aisle to appear on “The View,” but some, including Vice President J.D. Vance, Health Secretary Robert F. Kennedy, Jr., Secretary of State Marco Rubio and entrepreneur Elon Musk, have declined the invitation.

The station also noted that, while the FCC has questioned the exemption for “The View,” the agency hasn’t shown interest in regulating programs on other networks, “including the many voices — conservative and liberal — on broadcast radio.” The FCC also oversees radio station licenses.

“The danger is that the government will simply decide which perspectives to regulate and which to leave undisturbed,” ABC said.

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On April 28, Carr called for a review of Disney’s broadcast licenses, including for the Houston station and KABC-TV in Los Angeles, two years before any of them were set to expire. The FCC said the review was part of the agency’s year-old inquiry into Disney’s diversity, equity and inclusion policies and whether they violated federal anti-discrimination rules.

In its Thursday petition, ABC said it had fully complied with the FCC’s request for documents related to its diversity and hiring.

The company has produced more than 11,000 pages of documents to comply with the request, Disney said.

The same week that Disney sent documents to the FCC, Kimmel made a joke on his show about Melania Trump, comparing her glow to that of “an expectant widow.” On April 25, a gunman tried to breach security at the Washington Hilton, where the first couple were on stage for the White House Correspondents’ Assn. Dinner. Shots were fired outside the ballroom.

Three days later, the FCC announced it was requiring early license renewal applications for the Disney-owned stations.

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

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U.S. Targets Iran’s Missile and Drone Program With Sanctions

The United States on Friday announced a flurry of new sanctions intended to increase pressure on Iran’s economy, targeting people and companies in China and Hong Kong that have been helping the Iranian military gain access to supplies and war equipment.

The sanctions came ahead of a major summit between President Trump and China’s leader, Xi Jinping, in Beijing next week. China’s support for Iran has become a flashpoint with the Trump administration, which has been trying to compel independent Chinese refineries to stop purchasing Iranian oil.

China is Iran’s biggest buyer of oil, and the Trump administration has said that it is sponsoring terrorism by propping up the Iranian economy.

The new sanctions are aimed at Iran’s military industrial supply chain, and are intended to make it harder for Iran to secure access to the material it needs to build drones and missiles. In addition to China, the sanctions also target people and companies based in Belarus and the United Arab Emirates.

“Under President Trump’s decisive leadership, we will continue to act to keep America safe and target foreign individuals and companies providing Iran’s military with weapons for use against U.S. forces,” Treasury Secretary Scott Bessent said in a statement.

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The Trump administration has been looking for ways to squeeze Iran’s economy and pressure the Iranian government to reopen the Strait of Hormuz, a conduit for the flow of global oil. Oil tankers have had sporadic access to the critical waterway since the war started earlier this year, and the United States and Iran have been fighting over who should control it.

U.S. warships that have been trying to transit the strait have been attacked by Iranian forces. The United States on Friday fired on and disabled two Iranian-flagged oil tankers as they tried to reach an Iranian port.

The Treasury Department has also imposed sanctions on the Chinese “teapot” refineries this month. The independent refineries are major purchasers of Iranian oil. But China invoked a domestic policy ordering its companies to disregard the sanctions.

Mr. Bessent said earlier this week that he expected Mr. Trump to urge Mr. Xi to use the country’s leverage over Iran to pressure it to allow oil cargo to travel.

“Let’s see if China — let’s see them step up with some diplomacy and get the Iranians to open the strait,” Mr. Bessent told Fox News on Monday.

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General Motors to pay $12.5 million to settle claims that it illegally sold California driver data

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General Motors to pay .5 million to settle claims that it illegally sold California driver data

General Motors has agreed to pay $12.5 million dollars to settle claims that the automaker illegally sold location and driving data of hundreds of thousands of Californians, state officials said Friday.

The settlement is an example of how automakers are facing more scrutiny over allegations that they share driver data with the insurance industry, influencing how much people pay for coverage. California, though, has a law that bars insurers from using driving data to set rates.

“If we get word that a company is illegally collecting, storing or selling consumer data, we won’t hesitate to look under the hood and hold them accountable to the law,” California Atty. Gen. Rob Bonta said in a news conference.

The settlement is the largest California Consumer Privacy Act penalty in the state’s history, Bonta said.

The act gives California consumers the right to request that businesses disclose what data they collect. They can also opt out of the sharing or sale of their personal information and request that businesses delete their data.

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Investigators found that from 2020 to 2024, GM sold driver data, including names, contact information, location data and driving behavior data, to data brokers Verisk Analytics Inc. and LexisNexis Risk Solutions. The data came from a driver’s use of OnStar, which is owned by GM and provides roadside assistance, navigation and other services.

GM said the agreement addresses a product called OnStar Smart Driver that the company discontinued in 2024. The product was meant to help improve people’s driving but faced privacy concerns from consumers. In 2024, GM also ended its partnership with the two data brokers and said it would enhance privacy controls.

“Vehicle connectivity is central to a modern and safe driving experience, which is why we’re committed to being clear and transparent with our customers about our practices and the choices and control they have over their information,” a GM spokesperson said in a statement.

Various district attorneys throughout the state, including in Los Angeles and San Francisco, were involved in the investigation and settlement.

Technology has been playing a bigger role in the auto industry, but the data collected from drivers can reveal personal information about people’s daily habits, including where they drop off their kids and doctor visits.

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The California Privacy Protection Agency in 2023 started investigating the privacy practices of connected cars. As the state was looking into the automakers, the New York Times reported in 2024 that GM was sharing consumer driving behavior with insurance companies. Nationwide, GM reportedly made roughly $20 million from selling data to Verisk and LexisNexis.

The state’s privacy protection agency has taken action against other automakers before. Ford Motor Company was fined $375,703 in March and Honda was fined $632,500 in 2025 for privacy violations.

Under the GM settlement, which still needs court approval, the automaker would delete any driving data the company kept within 180 days and request that the two data brokers do the same. They would also stop selling driving data to consumer reporting agencies for five years and develop a privacy program that includes assessing and mitigating the risks of data collected from OnStar.

California’s settlement with GM came after the Federal Trade Commission in 2025 also took action against the automaker and OnStar for its privacy practices, barring them from disclosing location and driver behavior data to consumer reporting agencies for five years.

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