One outcome I didn’t expect as a result of the highest tariffs in 100 years was the surge in 10yrTYs (4.38% +8.7bp) as US sovereigns lose safe haven status among investors. Normally as the US economy enters recession, 10yrTYs fall as demand for credit dries up. We’ve had the opposite happen here as investors have abandoned treasuries. Not sure how Trump reacts to this other than to put even more pressure on Fed Chair Powell to cut short term int rates.
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