Bonds & Stocks
The exodus from longer-dated US Treasuries sent yields surging, fueling the biggest selloff since 2020 in what’s supposed to be the world’s safest assets. The yield on 30-year Treasuries soared 15 basis points to over 4.9% early in the US trading day.
Economy
President Donald Trump’s so-called reciprocal tariffs are now in place, dealing a thunderous blow to the world economy as he pushes forward efforts to drastically reorder global trade. Trump’s latest tariffs push levies imposed on China this year to as high as 104%, along with import taxes on roughly 60 trading partners that run trade surpluses with the U.S. That comes after a 10% baseline tariff for most US trading partners took effect Saturday.
World
Wild swings in Japan’s sovereign bond market in response to President Trump’s tariff measures mean that futures are becoming less effective as a hedge. The amount of open interest in government bond futures – which indicates buying and selling in the market – fell sharply on Tuesday to a level not seen since December 2022.