Treasury USA at 4.38%: now the Bags of the Bags also infects Washington State
In a few days the 10-year title expanded the returns of almost 40 cents, with a 3-4% loss on existing emissions. Investors fleeing the US debt. The dollar is also down, yesterday at 1.1037 (-8% from January)
Another chaotic session for world bags. But the most relevant news of this Wednesday 9 April concerns the jolt that for the first time since Donald Trump has opened the duties crisis affects the fixed income market and in particular the US Treasury. In fact, during the day the most intense exchanges affected the US bond market, where the Treasury returns increased abruptly. In particular, the yields of the ten -year went up to 4.37% from 4.26% of Tuesday evening and from 4.01% which was recorded at the end of last week. In the morning he even approached 4.5%. Movements of 30-50 basis on the course of a few days represent a huge variation for the bond market, where the oscillations normally measure themselves on the amplitude of a few cents of the percentage point.
They sell the Hedge Fund
It is therefore an enormous change for the bond market and it could be the indication that the stress phase is extending from the actions to the obligations. Analysts claim that there may be several reasons behind this movement, including the need for hedge fund and other investors to sell their Treasury to collect liquidity and compensate the strong losses on the share market. Also
Investors outside the United States could sell their securities
of the US Treasury due to the commercial war. Both actions would push down the prices of the Treasury securities, which in turn
would increase their returns.
Dollar, emerging currency oscillations
The trend of the performance of Treasury at 10 years of age was followed with extreme attention by Scott Beesent, the secretary to the Treasury Department, who considers him the litmus test of the effectiveness of the economic policies of the Trump administration. The fact that the performance of the ten -year is
rising up to 4.50%, confirms the seat of government bonds
US. The rise in returns naturally constitutes a very negative element for the refinancing of the enormous American debt and could open new rifts within the Trump Administration (after the Musk-Navarro case). «Another great concern – underlines Filippo Diodovich, Senior Market Strategist of IG Italia. Diodovich – It is the dollar that highlights movements as if it were a currency of an emerging country (with variations higher than the percentage point). The collapse of the dollar also increases the impact of duties on affected countries « .
In free fall the fall of the investors
«The fall of the former dollar king is linked to many reasons. First of all « the increase in the chances of a recession in the United States that
The Federal Reserve should force to cut the rates many times
interest (great dilemma for the Fed who will have to choose to save the places of
work and support the stability of the financial markets at the cost of not
Check the inflationary pressures) « , explains IG Italia. Then there is the
« Loss of trust of investors on the abilities of the Trump administration to carry out efficient economic policies » and « the reduction of the consideration of the green ticket as a refuge currency in the situations of financial turbulence » « . Not to mention « the will of some countries to carry on a de-dollarization process ».
