"Reciprocal tariffs"
- Thread starter Sean Miller Fan
- Start date
Love the new signature line. The first step to fixing a problem is acknowledging that you have one.
Since you won't pay for subscription to an actual news organization.
US bond rout rings alarm bells, as focus turns to Treasury auction
SINGAPORE/LONDON April 9 (Reuters) - U.S. Treasuries, the bedrock of the global financial system, were hit by fresh selling pressure on Wednesday, in a sign that investors were dumping their safest assets as turmoil unleashed by U.S. tariffs prompts forced selling and a dash for cash.
Yields on 10-year Treasury notes jumped to a seven-week high, while the dollar, also a traditional safe haven, weakened against other major currencies in further evidence that confidence in the world's biggest economy has been shaken.
STEMMING A CRISIS
Japan's central bank, finance ministry and banking regulator called an unscheduled meeting to discuss the moves, which pulled back some of the extreme selling.
The Federal Reserve may need to cut rates by more than expected or offer a targeted lending facility, similar to the measures taken during the COVID crisis and global financial crisis, some analysts said.
Despite the growing speculation, Deutsche Bank analysts said Fed intervention was unlikely "given uncertainty around tariff policies and the likely significant inflationary effects."
But they added: "What could prompt Fed intervention, however, is a breakdown in market functioning."
Others have pointed to potential changes in global trade flows over the long run slowing foreign buying of U.S. debt, or that foreign holders could turn sellers.
Soft demand for the U.S. Treasury's $58 billion auction of three-year notes fuelled worries about tepid interest in the $39 billion sale of 10-year notes and a $22 billion auction of 30-year bonds on Thursday. The cost of insuring against a U.S. default meanwhile has risen.
"Markets are now concerned that China and other countries could 'dump' U.S. Treasuries as a retaliation tool," said Grace Tam, chief investment adviser at BNP Paribas Wealth Management in Hong Kong.
#winning4losers
yes workers may not want low paying jobs now because they have gotten used to being at the government teat for decades and now believe that certain work is below them.
