While headline tariff risk has been dominated by equity levels and Treasury yields, stress in fixed-income markets is also evident. Overall levels remain below previous crisis peaks, but the speed of this move is unusual — comparable only to the speed seen during the COVID-19 sell-off and global financial crisis.

Economists have cut growth forecasts and raised inflation expectations since the U.S. tariff announcement on April 2. For multi-asset-class investors, the key question is how shifting macroeconomic expectations could affect asset prices.