Tariff concerns pressure the market, Wall Street selects the best safe-haven asset in the bond market: 5Y U.S. Treasury bonds

As tariffs influence the Federal Reserve's interest rate path, the 5-year U.S. Treasury bond has become favored in the market, turning into a safe-haven asset. Investor demand for it has surged, pushing option costs to their highest level since last year. JPMorgan Chase stated that the 5-year bond will benefit from the Fed's potential delay in interest rate cuts. In contrast, the 2-year bond is sensitive to interest rate policies, while the 10-year and 30-year bonds are affected by economic health. Goldman Sachs pointed out that the 5-year bond offers a safe balance as investor concerns about inflation and tariffs intensify