Treasury yields spiked on Wednesday as investors bailed out of what has been perceived as the world’s safest instrument on expectations of crumbling foreign demand as tariffs take effect.

Treasury yields rose as the selloff in U.S. government bonds continued following a historically bad start to the week. A bad auction was being blamed for investors ditching Treasuries Tuesday, but at least part of the reason for the drop could be the unwind of ‘the basis trade,

Confidence in the US economy is plummeting as investors dumped government debt amid growing concerns over the impact of Donald Trump's tariffs. On Wednesday, the yield - or interest rate - on US bonds spiked sharply to touch the highest level since February at 4.

The market for U.S. Treasurys is looking a bit shaky at the moment. Weak demand for a $58 billion auction of 3-year notes this afternoon has helped spur a sharp selloff in longer-term bonds–particularly the 30-year bond.

U.S. Treasury yields were mixed as investors assess U.S. President Donald Trump’s tariff policy and threats of even higher levies against China.