After Trump's "reciprocal tariffs" officially came into effect, the US bond market experienced historic turmoil.

On April 22, the Financial Times analyzed the article and pointed out that the bond storm in the plunge of US bonds in early April may be the driving force behind it.

The Financial Times quoted data from Japan's Treasury Ministry showing that private institutions, including banks and pension funds, sold $17.5 billion worth of long-term foreign bonds in the week ended April 4. Another $3.6 billion was sold in the following week. That totaled more than $20 billion in selling, one of the largest two-week sell-offs since 2005.

In the following four trading days, the S&P 500 plummeted 12%. The U.S. Treasury market suffered a heavy blow, with 10-year Treasury yields soaring in the week of April 11, the biggest gain since 2001.

While the Japanese Ministry of Finance’s report does not specify which long-term bonds Japanese financial institutions trade, Tomoaki Shishido, senior interest rate strategist at Nomura Bank, said, “a large part of Japan’s sell-off may be U.S. Treasury or U.S. institutional bonds.”

He also added: "Some foreign bond sell-offs may come from a rebalancing of Japanese pension funds, or it may be banks or life insurance companies reducing their interest rate risks".