[U.S. Treasury Yields Break Trump Threshold, TACO Expectations Resurface, But This Time May Be Different] BlockBeats News, July 24: Influenced by both macroeconomic factors and geopolitical conflicts, U.S. Treasury yields have recently risen significantly. The 10-year Treasury yield climbed to approximately 4.69%, reaching its highest level since January 2025 and marking a rare level during Trump’s second term. Previously, during trade disputes or geopolitical events, Trump often "pulled back from the brink" when yields spiked, softening policies through delays or exemptions to calm the market. This pattern has been dubbed "TACO" (Trump Always Chickens Out). However, whether Trump will repeat the TACO approach this time remains uncertain. On one hand, the U.S. Trade Representative (USTR) announced on July 23 local time that it would impose tariffs of 10%–12.5% on 60 economies. On the other hand, the primary driver of the current yield increase is geopolitical conflict. Even if Trump is willing to compromise, the hardline stance of Iran may not yield. Additionally, with midterm elections approaching, Trump needs to maintain a strongman image in foreign affairs to present himself as a "victor" to domestic voters. As a result, he has limited leverage on the Iran issue, and the room for TACO maneuvers is constrained by domestic electoral considerations. In summary, under the dual pressures of internal and external challenges, how Trump will adjust his policies remains a key focus for the market moving forward.