Posted on 04/10/2025 9:00:23 AM PDT by Miami Rebel
U.S. Treasury investors were left bruised on Wednesday despite a temporary pause in U.S. tariffs, as some funds were forced to sell bonds in a dash for cash while others called into question the bonds’ status as the world’s safest asset.
Yields on 10-year Treasury notes, which had jumped to a seven-week high, maintained higher levels after President Trump said on Wednesday he authorized a 90-day pause for most of his new tariffs but was raising the tariff rate for China to 125%, effective immediately.
An afternoon auction of 10-year Treasury bonds, which had been a focus of the market, came in within market expectations. The auction results provided further relief to the market.
"The 90-day suspension does allow nice breathing room to allow negotiation to settle in and market valuations have clearly been reset," said Carol Schleif, chief market strategist at BMO private wealth. "Yet the uncertainty for companies remains."
In the past, moves of this magnitude in global markets have tended to elicit a forceful response from major governments and central banks, with the United States leading the way.
At different points during volatile trading, the run-up in yields so far this week topped the biggest weekly jump since 2001.
The dollar, also a traditional safe haven but which had weakened against other major currencies, rebounded, as did U.S. stocks, after Trump's announcement.
Analysts and investors across the globe pointed to the sell-off in Treasuries this week as evidence that confidence in the world's biggest economy has been shaken.
"The market has lost faith in U.S. assets," Deutsche Bank analysts wrote in a research note earlier on Wednesday before Trump's announcement.
Marc Rowan, CEO of Apollo Global Management, the massive alternative asset manager, said in a CNBC interview that he was worried about damage to the U.S. brand.
(Excerpt) Read more at reuters.com ...
Our Jap friends stabbed Trump in the back with their big bond dump. I guess Mazie Hirono told the Emperor that Trump made “unwanted sexual advances towards her.” Japan still isn’t our friend.
Fantastic buys out there, I’ll keep adding to the best stocks in the world.
You just can’t please some people.
Did believe that our trade partners would docilely acquiesce to unilateral trade sanctions by us?
To be clear, we did the “stabbing” first.
Tom Westbrook, Rae Wee and Dhara Ranasinghe
Foredingers.
Our “allies” have been tariffing us for 80 years now. Enough is enough. Why do you want to sacrifice the middle class and American prosperity for so-called free trade?
They’ve been stabbing the hell out of us for decades. We’re not 40 trillion in debt because that money was spent on Americans.
True to form, you Gotta find the most negative article you can.
Equine feces. Trump's tariffs didn't even equal those already levied against American exports.
We have trade treaties with our allies, including Japan. Renegotiation is fine.
> Japan still isn’t our friend.<
“Many Germans feel guilty about the war. But they don’t explain the real guilt we share - That we lost.”
- Nazi test pilot Hanna Reitsch
I wonder how many Japanese feel/felt that way.
“Trump’s tariffs didn’t even equal those already levied against American exports.”
OK. Could you be more specific?
There was a list of tariffs and countries posted a few days ago on FR. Go look. I’m busy.
The country had a number of economic issues under the gold standard.
Boo F’ning Hoo...
In the game of Risk, nobody is your friend.
All wealth is both fleeting and fickle. Only a small error in timing can undo years, decades of effort and careful stewardship, either on the ebb tide, or a flood that becomes a tsunami.
Not the time to go wobbly.
MAGA voted for main street and not Wall Street. Yes, Wall Street has a role but it doesn’t need to hold the hand of the good of the economy. Investing is gambling. Good economic policy benefiting America will hurt the China investors.
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