A Jedi Master's perspective on the recent U.S. Treasury yield movements, tariff reprieves, and bond market volatility.
A Jedi Master's perspective on the recent U.S. Treasury yield movements, tariff reprieves, and bond market volatility.

A Great Disturbance in the Force There Was!

Hmm moved lower the U.S. Treasury yields have. Positive news on inflation the market did receive yes. Breathed a sigh of relief the investors did after President Trump enacted a 90 day tariff reprieve. A sharp sell off in bonds reversed he did. Like pulling teeth this news is but interesting it is.

Yields Lower They Go!

Down the 10 year Treasury yield went by 7 basis points to 4.326%. Dropped the 2 year Treasury yield did too more than 11 basis points to 3.837%. But on Wednesday climbed the 10 year Treasury to over 4.51% at its highest. Volatility unusual in the bond market there was. Remember young Padawans one basis point is equal to 0.01%. Inversely yields move to prices yes.

Cooler Inflation A Welcome Surprise!

For March a cooler than expected inflation report we received. Increased the consumer price index did by 2.4% year over year. Expecting 2.6% the economists were. A surprise this is! Like finding a Wookiee with manners rare it is!

Tariff Pause A Temporary Peace!

Announced Trump did a 90 day tariff pause. Affected countries relief they feel. Bringing the rate down to a universal 10% tariff he plans. Excluded China is. A trade war they are in hmm? To 125% tariffs on their goods rose. A path to the dark side this is.

Bond Market In Sharp Focus!

Sold off their bond holdings the investors did. Prices dropping yields spiking the result was. Unexpected this was as they typically flock to U.S. Treasurys during market volatility. A twist this is! As backwards as walking on your hands hmmm.

Uncertainty Lingers The Force is Murky!

A 10% minimum universal tariff the largest increase in decades it is. Heightened trade uncertainty likely to linger it will. Limited visibility on what kind of deals the U.S. would find acceptable. "Do or do not there is no try," but with tariffs try we must even if success we cannot guarantee. The Force is strong but the future always in motion it is. May the Force be with your investments always.


Comments