Trade tariffs once again shaped market sentiment during the previous week. The US Administration announced the intent for introduction of 50% tariffs on goods imported from the European Union, which should become effective from 1st July this year. Market immediately reacted to this news, bringing US equities lower, and surging US treasuries. Another news that hit the market and impacted negatively US yields was that the US House of Representatives adopted a tax and spending bill, which is expected to add trillions of US Dollars to the US debt, as analysts are noting. The US has already been downgraded twice by rating agencies, last week by Moody’s, due to high concerns over the sustainability of the US debt.
The 10Y US benchmark reached the highest weekly value at 4,62%, but eased as of the end of the week to the level of 4,50%. This type of swings in the Treasury yields will most probably continue in the coming period. The market is currently extremely sensitive to fundamentals and any news regarding trade tariffs.
The 10Y US benchmark reached the highest weekly value at 4,62%, but eased as of the end of the week to the level of 4,50%. This type of swings in the Treasury yields will most probably continue in the coming period. The market is currently extremely sensitive to fundamentals and any news regarding trade tariffs.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.