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 ...
T-Bills still the best play, Warren Buffet knows.
I’m only buy stocks with money I’ll never have to touch. It’s for the heirs. Unless I want a toy, like something with 1,000 horsepower.
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Actually, most of it was.
Whenever someone is quoted or writes that they are worried about “damage to the U.S. brand” you know for a fact that 1. They are an idiot; 2. They have nothing meaningful to say, and; 3. They are likely in the business because they love corruption and political graft.
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