Market uncertainty continues to be supported with tariffs-narrative induced by US Administration and other world governments. The tariffs-war intensified between the US and China, bringing them to the level of absurdity. The fear of stagflation is for one more time active on financial markets. The 10Y Treasury yields ended one more week at higher grounds. They started the week around 3,87% and ended it at 4,49%. The highest weekly level was reached on Friday, at the level of 4,58%. As analysts involved in a matter noted, the highest sellers of US Treasuries were China and Japan.
The tariffs-war is currently disrupting the market. This sentiment does not have anything to do with current macro data and anticipation on future monetary policy. It has to do with a perception of investors regarding future effects of currently imposed tariffs, which are changeable on a daily basis. The sentiment is the one that is supporting extreme volatilities, as markets face it for the last few weeks now. In the future period, this will all settle down, and the market will find its equilibrium level. It is just a game of nerves at this moment.
The tariffs-war is currently disrupting the market. This sentiment does not have anything to do with current macro data and anticipation on future monetary policy. It has to do with a perception of investors regarding future effects of currently imposed tariffs, which are changeable on a daily basis. The sentiment is the one that is supporting extreme volatilities, as markets face it for the last few weeks now. In the future period, this will all settle down, and the market will find its equilibrium level. It is just a game of nerves at this moment.
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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.