President Donald Trump is downplaying concerns that the bond market influenced his April 9th decision to pause reciprocal tariffs on all countries except China. But despite his insistence, market reaction tells another story.
What Happened: Trump’s surprise announcement earlier this month sparked a rally in equity markets — but more notably, it cooled off surging bond yields that had rattled investors in the days prior. Speaking to reporters after the announcement, Trump hinted at market concerns:
- “The bond market is very tricky. I was watching it,” Trump said. “People were getting a little queasy… they were getting a little bit yippy, a little bit afraid.”
History Repeats: The remark evoked memories of James Carville’s iconic quote: “I used to think that if there was reincarnation, I wanted to come back as the president or the pope… But now I would like to come back as the bond market. You can intimidate everybody.”
Take It Back: While the President may have admitted the market was jittery in the moment, his latest comments suggest he’s now walking that back. In a recent Time interview, Trump dismissed concerns about rising yields:
- “I wasn’t worried. The bond market was getting the yips, but I wasn’t… I know what we have.”
- Trump also denied reports that Bessent and Lutnick convinced the President to pause the tariffs because of market reaction. “They didn’t tell me. I did that.”
Yield Stability: Since the April 9th announcement, bond yields have stabilized. The 10-year Treasury yield, which had spiked above 4.6% before the pause, has held relatively flat, rising only a few basis points.
Bottom Line: Trump may claim confidence, but his remarks — and the market’s response — suggest the bond market did exactly what Carville warned: It intimidated everyone, even the White House.