I don't necessarily think it's Europe's retaliatory tariffs. The main reason might still be the overall market expectations of rate cuts and concerns about increasing uncertainty.

1. The US Treasury yield curve has become steeper. The primary reason is that dovish Harker has explicitly not participated in the Federal Reserve Chair race, increasing the probability of hawkish Waller. Another piece of news is that the Treasury Department plans to reopen the 7-year Treasury auction. The concern in the bond market is that this could be a signal that the Treasury Department may increase long-term debt issuance in the future. As a result, the US 10-year yield quickly broke through the key resistance level of 4.2%.

2. Bear steepening is a nightmare for leveraged funds. Especially since the short end can't go down either. Additionally, the volatility of the entire TLT is really too low. Many traders are probably worried as well.