President Trump’s tariff plans have raised jitters about the stability of the bond market as demand quickly dropped before he implemented his 90-day pause on most tariffs.

Trump referenced the bond market in his Wednesday remarks explaining his decision to institute the pause, seeming to note the drop in demand for U.S. Treasurys that have generally been considered to be stable during financial chaos and a big jump in interest rates.

Economists have said the bond market’s movement may have given even more reason for concern than the drops in the stock market over the past week. But the market has begun to stabilize, at least for now, with most of the tariffs delayed.

Here’s what you need to know about concerns over the bond market.

What is the bond market?

Put simply, the bond market is where bonds, which are loans or IOUs, are bought and sold. For U.S. Treasurys, the federal government sells bonds throughout the world that individuals, companies or other governments buy in exchange for being paid back with interest after a certain amount of time.

The Treasury Department also holds regular auctions of Treasury bonds with various maturities, the primary way the U.S. government finances the national debt.

The interest gradually builds until the bond reaches maturity, and the buyer can then receive back their full promised amount.

The buyer can cash their bond early and receive their money back with less interest than they would receive if they waited. Or the buyer can sell their bond to another party to receive a payout immediately, allowing the third party to take ownership of the bond and receive the original cost of it and the interest once it reaches........

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