Tariff Shock Reverberates in the Bond Market

Tariff War Transforms US Bond Market From Boring to ‘Yippy’

Photo by Ablokhin via iStockThis story was originally published on The Daily Upside. To receive delivering razor sharp analysis and perspective on all things finance, economics, and markets, subscribe to our free The Daily Upside newsletter.The Dow Jones Industrial Average and the S&P 500 indexes get major play in the press, but it is the US bond market that has turned into the most intriguing part of the financial markets since the inception of…

Traders Eye Longer-Term Options to Hedge Post-Tariff Shock Rally

As April’s volatility storm fades into memory, traders are left balancing calmer markets and the ever-present risk of a fresh round of headline shocks.

Tariff Shock Reverberates in the Bond Market

Wall Street Journal: “Since April 2, declines in the prices of longer-term Treasurys have driven up the yield on the benchmark 10-year note to around 4.37%, according to Tradeweb. That climb happened even while shorter-term yields were falling, dragged down by bets that the Federal Reserve will respond to a slowing economy by cutting interest rates.” “The unusual divergence, known in Wall Street parlance as a ‘steepening twist,’ is already chall…

Logon Opalesque Alternative Market Briefing

After tariff rout, hedge funds revive euro rate steepeners From Risk: Hedge funds are stepping back into euro rates steepener trades after taking profits during April's tariff-driven turbulence, betting that the gap between short- and long-term swap rates will continue to widen in response to Dutch... Article link

Yield demands spike as investors shun long-dated US Treasurys

Long-dated Treasurys are falling out of favor fast. Since April 2, the 10-year yield jumped to 4.37% as bond prices dropped, even though shorter-term yields went the other way. That divide—what Wall Street calls a steepening twist—came as markets were still reacting to President Donald Trump’s tariff moves, which triggered chaos earlier in April. This twist has already started raising borrowing costs across the economy. The Federal Reserve may p…