Trump has thrown the ultimate safe haven asset into crisis
https://www.telegraph.co.uk/business/2025/04/09/trump-thrown-world-ultimate-safe-haven-asset-into-crisis/
Markets are losing faith in America as the underwriter of the global financial order.
https://www.telegraph.co.uk/business/2025/04/09/trump-thrown-world-ultimate-safe-haven-asset-into-crisis/
Markets are losing faith in America as the underwriter of the global financial order.
US asset selloff hammers dollar against safe-haven currencies, euro
https://www.reuters.com/markets/currencies/dollar-slips-yen-swissy-yuan-hits-record-low-2025-04-09/
"We are witnessing a simultaneous collapse in the price of all U.S. assets including equities, the dollar versus alternative reserve FX and the bond market," said George Saravelos, global head of forex research at Deutsche Bank. "We are entering uncharted territory," he added, arguing that "the U.S. administration policy is encouraging a trend towards de-dollarization."
If you think it’s alarming now, just wait for Trump to wreck the bond market
https://www.telegraph.co.uk/business/2025/04/08/trump-sell-off-is-bad-wait-until-wreck-us-bond-market/
Treasuries ‘Fire Sale’ Sends Long-Term Yields Soaring Worldwide
https://www.bloomberg.com/news/articles/2025-04-09/treasuries-fire-sale-sends-long-term-yields-soaring-worldwide
The World Is Finding a Plausible Alternative to Treasuries
https://www.bloomberg.com/news/articles/2025-04-08/the-world-suddenly-has-a-plausible-alternative-to-us-treasuries
The hopeless search for Trump’s cunning plan
https://www.ft.com/content/0f3e2041-3665-4c0c-a2cb-a0d88165c88f
Janan Ganesh:
https://www.reuters.com/markets/currencies/dollar-slips-yen-swissy-yuan-hits-record-low-2025-04-09/
"We are witnessing a simultaneous collapse in the price of all U.S. assets including equities, the dollar versus alternative reserve FX and the bond market," said George Saravelos, global head of forex research at Deutsche Bank. "We are entering uncharted territory," he added, arguing that "the U.S. administration policy is encouraging a trend towards de-dollarization."
https://www.telegraph.co.uk/business/2025/04/08/trump-sell-off-is-bad-wait-until-wreck-us-bond-market/
https://www.bloomberg.com/news/articles/2025-04-09/treasuries-fire-sale-sends-long-term-yields-soaring-worldwide
https://www.bloomberg.com/news/articles/2025-04-08/the-world-suddenly-has-a-plausible-alternative-to-us-treasuries
https://www.ft.com/content/0f3e2041-3665-4c0c-a2cb-a0d88165c88f
Janan Ganesh:
At what point does the world call off the search for a grand Trump strategy? British readers will remember Baldrick, the hapless TV sidekick who always kept a “cunning plan” up his sleeve. Trump makes no such claim. Instead, he has cunning plans ascribed to him by those who find it hard to believe that dogma, caprice and nihilism are factors at the top of politics.
The hopeful tariff endgame isn’t so hopeful
https://www.ft.com/content/91879b7b-c492-4329-a412-ab597ca96b04
Jason Furman:
A hopeful endgame for the tariff fiasco is making the rounds on Wall Street and in Washington. Donald Trump cuts quick deals with countries around the world, declares victory, and eliminates or dramatically reduces the “reciprocal” tariffs, leaving only the 10 per cent across-the-board ones plus miscellaneous others like steel and aluminium. The hope is that markets would cheer the certainty, businesses would return to planning for their futures, and everyone could turn their attention elsewhere. That this settlement would be viewed as a victory shows just how far and how quickly the Overton window — or policy ideas regarded as acceptable — has shifted to a tariff rate that would put the US on par with Iran and Venezuela.
https://www.ft.com/content/91879b7b-c492-4329-a412-ab597ca96b04
Jason Furman:
A hopeful endgame for the tariff fiasco is making the rounds on Wall Street and in Washington. Donald Trump cuts quick deals with countries around the world, declares victory, and eliminates or dramatically reduces the “reciprocal” tariffs, leaving only the 10 per cent across-the-board ones plus miscellaneous others like steel and aluminium. The hope is that markets would cheer the certainty, businesses would return to planning for their futures, and everyone could turn their attention elsewhere. That this settlement would be viewed as a victory shows just how far and how quickly the Overton window — or policy ideas regarded as acceptable — has shifted to a tariff rate that would put the US on par with Iran and Venezuela.