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10-year Treasury Yield Falls Below Key Level as Calm Over Trade War Unravels
Trump is recklessly swinging the tariff stick, Blackrock CEO: Global concerns about the economy have reached an unprecedented level.
① Since Trump's return to the White House in January, he has announced several tariff measures and will introduce a so-called reciprocal tariff plan on Wednesday to further increase trade barriers; ② Blackrock CEO Larry Fink stated that Trump's trade war has pushed investors' anxiety about the Global economy to its highest point in recent years.
Can the Federal Reserve replicate the interest rate cuts of 2019 this time?
Guan Tao believes that the current USA is in the later stage of high inflation returning to trend values, and the intensity of the Trump 2.0 economic and trade friction has already exceeded that of Trump 1.0, which will increase the stickiness of inflation and even raise the risk of a secondary inflation. The policy space for the Federal Reserve is likely to be limited.
USA tariffs and non-farm payrolls are approaching! A crucial week for the interest rate market as Goldman Sachs urgently gives advice.
The interest rate market is entering a crucial week, as the USA will announce tariff announcements on April 2, and two days later, the non-farm payroll report will also have a significant impact.
What kind of week will this be? Global stock markets are facing a "tariff storm," and U.S. Treasury bonds are back in focus.
Since this quarter, U.S. Treasury bonds have outperformed Stocks, with a cumulative increase of more than 2%, while the S&P 500 Index has declined by about 5%. Analysis suggests that the 'reciprocal tariff' policy may impact the stock of Industries such as Autos, chips, and Pharmaceuticals, while the outlook of economic downturn and declining stock market will continue to elevate U.S. Treasury bonds as a safe haven Assets.
Trump worked overtime over the weekend. On Monday, U.S. stock futures and Asian stock markets plummeted, with risk aversion driving up gold prices and the yen, while the 10-Year T-Note yield fell by 5 basis points.
The upcoming announcement of a new round of tariff policies by Trump has raised concerns in the market, causing a general decline in Global stock markets, Gold prices to reach an all-time high, the yen to appreciate, and US bond yields to decrease. The Asia-Pacific stock market is weakening, with the yen performing strongly in the Forex market. Russian oil may face "secondary tariffs," increasing risks in the Energy market.