Tariff and Inflation Worries Kick Yields and the Dollar Higher
Bond yields and the greenback are sitting on substantial gains this morning on the back of a report suggesting that the US could apply universal tariffs on its major trading partners, and after data released yesterday seemed to bolster the case for a slowing in the Federal Reserve’s easing cycle, triggering a pullback in market bets on rate cuts. The benchmark ten-year Treasury yield is sitting near 4.7 percent—roughly ten basis points above the Monday open—and global rates curves are climbing in sympathy with the US move, with British gilts selling off at the most extreme pace. After having fully...