Treasury Yields Edge Lower Despite Threat Of Trade War

2025-02-05 10:36:00 ET

Summary

• The serene profile for Treasury yields is surprising, given the firehose of news updates on topics that, in theory, are relevant to market expectations, inflation, and economic growth.
• One of the concerns is that tariffs will raise prices, thereby stoking inflation.
• Perhaps the reasoning for the slide in Treasury yields of late is that a trade war also implies slower growth, or worse. In that case, one might argue that demand for safe-haven Treasuries has overwhelmed concerns about higher inflation.

President Trump’s comments and executive orders have roiled markets and investor expectations, but from the vantage of the Treasury market, a relative calm prevails. This could change, of course, but for now, key yields for government bonds are flat to slightly lower in recent days....

Read the full article on Seeking Alpha

For further details see: