Rates Spark: Is Sell America Inc. Now A Thing?
2025-04-09 04:50:00 ET
Summary
- US Treasuries have cheapened versus the risk-free rate, in a significant manner.
- The 3yr auction was a mess. There is now heightened nervousness ahead of the 10yr auction.
- This seemingly “Sell America Inc.” trade is one that's now dominating the rising recession risk theme that typically would have pushed yields down.
- EUR swap curves bull-flattened on the day. Tariffs will come into force on Wednesday, with no indications of delays or deals to suggest otherwise.
By Padhraic Garvey, CFA , and Benjamin Schroeder
US Treasury yields have marched higher again - What's going on?
The impact effect of tariffs was the discount for a recession and more rate cuts, and that combination was deemed a good rationale to buy bonds. It still is, and still could be in months to come. But the more troubling narrative of late is the notion of what we call a "Sell America Inc." risk. It's tough to get a gauge on this, and by the way, it does not have to be selling by foreigners, it can also be from domestics. What we can say with certainty is Treasury prices have been bullied lower in the past few days, and there has been a near-25bp spread underperformance versus German Bunds....
Read the full article on Seeking Alpha
For further details see:
Rates Spark: Is Sell America Inc. Now A Thing?
NASDAQ: VGSH
VGSH Trading
-0.15% G/L:
$58.185 Last:
1,336,052 Volume:
$58.20 Open:
