A divided U.S. appeals court has ruled that Immigration and Customs Enforcement cannot detain migrants for more than 90 days under the current administration’s mass detention policy without offering bond hearings.

The decision, which could affect thousands of detainees across Texas, Louisiana, and other states within the court’s jurisdiction, marks a significant legal setback for the Trump administration’s immigration enforcement strategy.

The ruling triggered a modest flight to safety in U.S. Treasuries, with yields dipping slightly as investors reassessed the political and policy risks surrounding the administration’s domestic agenda.

The market reaction was muted but directional, reflecting broader concerns about the sustainability of aggressive immigration policies in the face of mounting judicial pushback.

This development adds to a growing list of legal challenges facing the administration, including a recent federal judge’s block on subpoenas for state officials in Minnesota.

The Supreme Court is also poised to deliver rulings on two high-stakes cases that could further reshape the political landscape.