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,