The yield on 10-year US Treasury bonds has risen to 4.69%, and it remains to be seen whether Trump will repeat the TACO model

Affected by macroeconomic and geopolitical conflicts, the yield of 10-year US Treasury bonds has risen to about 4.69%, reaching a high since January 2025. The market is concerned whether US President Trump will repeat the TACO model of compromise in trade disputes. The Office of the United States Trade Representative (USTR) announced on July 23 that it has decided to impose tariffs ranging from 10% to 12.5% on 60 economies. The main reason for the current increase in yields is due to geopolitical conflicts, Iran's tough stance, and the approaching midterm elections in the United States. Trump needs to maintain his image as a strongman in diplomacy, which limits TACO's operational space.