The Treasury usually provides safe shelters, but bond yields are surged once again as investors discuss the Fed’s next move

• It was tough for most Americans. 401(k)s This is the first time since Trump released a mutual tariff chart at Rose Garden last week. The initial decline in benchmark’s 10-year yields could have provided hope to home buyers and sellers eager to lower mortgage rates, but prices continue to rise. The average fixed interest rate for a 30-year mortgage is still above 6.6%.

President Donald Trump’s book Mutual Tariffs It caused chaos in the stock market, but bonds are also on the wild side. In one of the worst on Wall Street Equity sale In recent history, investors have been piled up on safe assets like last week’s Treasury Department, but the obvious reversal of that trade means the ultimate impact Home loan And other common borrowing costs for Americans remain unknown.

Earlier on Monday, Benchmark 10-year Treasury bond yields fell 4% below 4% for the first time since October, down from around 4.8% in early January. It turned sharply between volatile Trade SessionHowever, rushing out of bonds increased yields by at least 20 basis points across all maturities. Bloomberg. As of Tuesday afternoon, the 10-year yield had approached the 4.30% mark.

As stocks and bonds mysteriously declined at the same time, this dramatic retracement of this dramatic yield has resulted in competing theories being thrown away by market watchers.

“Everyone is trying to allocate a story about why Treasury yields rose significantly yesterday,” Bill Meltz, head of capital markets research at the U.S. Bank Asset Management Group, said on Tuesday, “people don’t know the answer.”

However, there are some brief explanations while playing. Obviously investors are in a hurry Safety Last week, I will sell stocks and buy finances. It’s natural for traders to partially rewind those positions, Meltz said.

“So we’re looking at the bounce at the Treasury yield,” he said.

Mortgage interest rates remain high as they bring lashes

I’ll surrenderrepresents an investor’s annual revenue, rising as bond prices fall and vice versa. The former tends to occur when investors believe that the Federal Reserve will be forced to raise interest rates, which makes low payments on existing bonds less attractive than new debt.

Therefore, it is not surprising that yields have been whipped as a market Struggle In price What will the Fed do next? Meltz said traders were expecting a two-three quarter rate cut between late February and early March. The confusion after Wednesday’s announcement of tariffs has led investors to suddenly raise prices with a 4-5 interest rate cut, pushing yields down, but some are not optimistic.

In a speech on Friday, FRED Chairman Jerome Powell It is shown Central banks will continue their waiting approach as widespread tariffs raise fear outlook Stagflationor rising inflation combined with increasing growth. Investors hoped the Fed would be ready to provide bailouts if the recession continued, Meltz said.

“The market didn’t get it,” he said.

It’s been rough for most Americans 401(k) ever since Trump presented his mutual tariffs. The initial decline in yields could provide hope for home buyers and sellers who are eager to drop their mortgage rates based on the 10-year Treasury Department.

In fact, videos Trump reposted on social media platforms, True Social Proposed The president wanted to encourage investors to buy finances, pushed forward with yields, put pressure on the Fed and lowered the policy rates banks use to borrow from each other overnight.

The White House did not respond immediately Fortune Requests for comments on bond market movements this week.

Even if the president deliberately takes the market and forces the market to reduce borrowing costs, the strategy could prove ineffective. The average fixed interest rate for a 30-year mortgage is still above 6.6%, and has remained essentially flat for the past few weeks. According to In Freddie Mac.

The spread between that rate and 10-year yields is very wide now, Meltz said. It could increase during periods of market stress, he added. He added that one reason is that investors could get sour with mortgage bonds compared to the safer Treasury Department.

“That’s useless for consumers and borrowers,” Meltz said.

This story was originally introduced Fortune.com