Abrupt moves in the wake of the tariff announcement garner significant attention. The U.S. Treasury market has experienced abrupt moves in the aftermath of the tariff announcement. There is unlikely to be a major policy response unless there is an outright breakdown in market structure. Treasury auctions are critical to watch going forward for signs of whether demand is faltering. Recent abrupt shifts in the multi trillion dollar U.S. Treasury market have garnered significant attention. In this Q&A, we explore the factors driving the moves, the potential for policy responses, and the key factors to watch out for next. What has been going on in U.S. Treasury markets. U.S. Treasuries have been on a roller coaster ride. The initial rally following the April 2 tariff announcement gave way to a dramatic sell off in a liquidity strained market that prompted some calls for policy action to help alleviate the pressures.” Læs hele analysen her.
Morten W. Langer