President Donald Trump put his wind behind the equity index on the light of the Eastern day at 1:30 pm on Wednesday at 1:30 pm, announced a 90-day stagnation on most of his tariffs, but also reduced its trade war for the US vs China superpower struggle. Meanwhile, a healthy auction reduced fear in the bond market.
The President said, “China has increased the tariffs charged by the United States to 125%by the United States to 125%, immediately effective,” the President said. Social media to feed.
Because “more than 75 countries” have arrived to talk to the President’s people, Trump said, “He authorized the 90 -day stagnation, and during this period much less mutual tariffs during 10%, immediately effective.”
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The President’s interaction status has been reduced because Tariff The wishes of his administration did not have immediate effect.
LPL Financial Chief Fixed Income Strategist writes, “Despite low equity prices, the recent price of high treasury yields is similar to the Covid -19 episode.” Lorence gillam,
Gilum believes that “price action is not only in American markets; global bonds are experiencing similar sales pressures.” The bottom line is US Treasury Securities “It has not yet acted like heaven assets during this global cell-off.
Closing on the bell, blue-chip Dow jones industrial average Growed from 7.9% to 40,608. Comprehensive S&P 500 Index Jumped from 9.5% to 5,456. And tech-hawi Nasdac Composite Growed from 12.2% to 17,124.
Produced on 10 -year -old American Treasury Note
Meanwhile, on the yield 10 year old American Treasury Note On Wednesday, 4.515% was as high as 4.345% by EDT at 4 pm after high growth.
A auction of a healthy government of $ 39 billion in 10-year notes reduced the fear of fast flight from the US Dollar-Sampradaya. And the post of President provided additional relief.
Now more than ever, it pays to understand 10 -year -old American Treasury Yield, what it means for the global financial system and its path is President Donald J. How to shape Trump’s other administration.
Treasury Secretary Scott Besant said in several speeches, interviews and shows since January and April that 10 -year -old American Treasury produce is a special attention of Trump Administration as it fulfills the President’s tariff strategy.
Evercore ISI Vice Chairman wrote, “The message of Besent is in line with our view that he has essentially a job.” Krishna cavity in February.
This job is to try to prevent the 10-year yield from breaking 5%, at which we feel that ‘Trumponomics’ breaks down, breaking equity rolling and residence and other rate-sensitive areas. “
In an interview Fox News On Wednesday, the Treasury Secretary said that “attacks” in the bond market are not “systemic”.
What did fomc say
Minutes from 18-19 March Fed -meeting The show monetary policy makers were more worried about President Trump’s tariff.
“Most of the participants noted the possibility of inflation effects arising out of various factors, which they remain more frequent than being estimated,” read minutes, which were released at 2 pm on Wednesday.
FOMC voted to keep Federal fund rate As expected, he also announced the slow pace of unchanged from 4.25% to 4.50%, and quantitative tightening (QT).
Among the recent financial market volatility, amidst “growing speculation around potential fed intervention”, Goldman Sachs’ analysts Matthew Ruskin and Steven Zeng note that such a step is unlikely.
“This message was given the chair Powell last week,” analysts wrote, “and hasn’t changed that calculus since acute sales in the rates markets.”
When Ruskin and Zeng prepared their notes, the prices of Fed Fund Futures reflected 10% to 15% likely that the Fed would actually step before the May Fed Meeting. At the same time, he wrote, “A cut can actually be really reverse if it increases the expectations of inflation.”
What can Fed intervention do? According to Ruskin and Zeng, we have to see “a breakdown in market function”.
“In that context,” they explain, “what is annoying is recently a speed of American Treasury move, rapidly cheap in USTS relative to swap, and especially the fact that the UST yield is growing rapidly because the risk sells property.”
This suggests that “a decrease in safe-havan properties that return by March 2020.”
Fly like an airline
Delta air lines , Industrial stock The day was finished up to 23.4%, there was a loss of up to 26.8%year-on-year value-to 26.8%.
“Looking at the lack of economic clarity, said” CEO Ed Bastian of delta In a statement, “At this time there is a premature time to provide an update full-year approach.” Bastian said that “Delta is well deployed to give solid profitability and free cash flow for the year.”
Delta reported the EPS of the first quarter of 46 cents before forecasting the unanimous unanimous of 38 cents. Management “pre-declared” on 10 March Amendment at the bottom For its first-lady revenue, operating margin and EPS forecasts. The delta trade was one of the first companies to issue warnings based on the concerns of the war.
“The airline sector is in the eyes of a storm,” says TD Cowen analyst. Tom Fitzgerald“But we believe that Delta is a better port in the storm than many companions due to its revenue diversity and balance-world strength.” Fitzgerald repeated its $ 45 12 -month price target for his purchase rating and pulses stock.
