THE markets they seemed to be able to finish after the reverse of Trump on duties mutual. But the collapse of the government bonds triggered by political choices has affected trust in US debt. There is the feeling of a outflow of investments from abroad that return home, as the maxi-rialzo of theeuro on the dollar. And for someone the succession of the events that led to Trump’s behind he makes big trouble: it has to do with it Chinawith which the outcome of the duties war It is in total fog.
They are heavy hands those that have downloaded i Treasury American in recent days. In a decade Beijing almost halved, from 1,300 to 759 billion dollars, his exposure to American debt. Now it would be accelerating. A reconstruction of the financial magazine Forbes It says that the rain of sales that made the Treasuries yields splash at ten years at 4.50% focused at night, with a peak at midnight between 8 and 9 April when the Americans slept and Asian markets They were open. Ditto for 5%, alarm level, thirtieth anniversary.
Of course, the counterattacks in those hours are less liquid and therefore more influenced. But Forbes sees an alarm bell: the Chinese hand He presages new episodes. For those who buy back in Bag “There are hidden risks” and “the celebrations could be premature”. China will also have less bond than once, but can destabilize the Treasuries. Is devaluing it yuana nuclear weapon that can further exacerbate the clash with Trump. The dollar collapsed by over 2.4% on the euro, with the European uniform to almost 1.1230 at the top from July 2023, is another red spy on: Capital outgoing.
The same propertyist New York said that the collapse of the Treasuries accelerated the sensational behind: “The bond market is very deceptive, I was observing it. People were starting to be restless”.
The rest is chronicle. Until Sunday, in a weekend of golf, Trump seemed adamant on the liberation day tables. Then the discontent of several members of the Republican congressthe fear that the collapses frightened an electorate of which 62% are on the stock exchange directly or with the pension fund. Already on Monday 7 April – with the sensational fake news The suspension of the duties then denied and with the free fall bag, Trump had had to offer an olive twig to the markets. In charge of the secretary of the Treasury Scott Bessentman of Wall Street for decades of part of George Sorosto enter into commercial negotiations with Japan And South Korea.
In the meantime the hawk Peter Navarro reassured the across the Alongraist wing by writing on the Financial Times That on duties “is only the beginning”. But it is Trump himself who told that he has accrued the suspension by talking to Bessent and the secretary of trade Howard Lutnick. Without mentioning Navarro. Then two public weight outputs, the former Treasury Secretary Larry Summers who warns of a financial crisisAnd Jamie Dimonlistened to the number one of JP Morganthat on Fox News He said “the situation can worsen if there is no progress”.
Overall, the narrative according to which it was all studied, a master’s bang in the art of negotiation, seems denying the dynamics of what is perhaps the first big accident for Trump 2. And the duties, where even the minimum 10% is destabilizing, still promise pitfalls on the markets. As he writes Deutsche Bank“The genius is still outside the bottle in terms of political unpredictability” of the Tycoon.