US government bonds erased gains that sent the five-year Treasury note’s yield to the lowest level since October, led by rising European government bond yields after a report that the bloc is preparing to respond to any new tariffs.

The initial contours of President Trump tariffs seem to tickle animal spirits in Wall Street and Treasury bonds sell off, pushing yields higher. The president opened his remarks by saying that his new tariff policies would “make America wealthy again.

Bonds are benefiting from investor nervousness, with just hours to go before the onslaught of tariffs. On Wednesday, the 10-year yield was trading at 4.148%, a new low level for the year. The yield had closed at 4.