Recent developments in the bond market have led to significant fluctuations in U.S. Treasury yields, driven by concerns over tariffs and their potential impact on economic growth. The 10-year Treasury yield has recently experienced sharp reversals, with fluctuations between rising above and falling below the crucial 4% mark. Despite a flight to safety that has historically supported bond prices, the current environment has seen Treasury yields tumble to six-month lows as investors grapple with recession fears. Tariff announcements from the Trump administration have intensified volatility, prompting a strategic shift among investors toward safer, short-term Treasuries. Analysts warn that the ongoing turmoil in the bond markets reflects deeper concerns about inflation and recession, categorizing the current state as a significant downturn in bond performance. This uncertainty leaves market participants questioning how the Federal Reserve will navigate between potential recession and inflation risks.