The poor monthly performance reflects the growing headwinds Treasuries face as the US administration’s unpredictable policies shake investor confidence. May saw a resurgence in worries over the US budget deficit as Donald Trump wrestles with Congress over a bill that promises to cut taxes.
US Treasuries are delivering their first monthly loss this year, buffeted by renewed tariff uncertainty and growing anxiety over mounting levels of government debt.
A Bloomberg index that tracks the bonds was down more than 1.2% in May through Thursday’s close after all maturities came under pressure. The 30-year yield rose for a third consecutive month, its longest losing streak since 2023, while yields on two- and 10-year tenors posted their first monthly increases of this year.
