Bond-market convulsions look extremely dangerous
Treasury yields and other signs of stress are flashing red
Of all the lines that could have rebounded, this might be the worst. During Asian trading hours on April 9th the yield on ten-year American Treasuries leapt to 4.5% (see chart), with 30-year bonds rising even higher. Early on April 7th the ten-year yield had been just 3.9%. Such yields normally fall when share prices plunge and panic is in the air, since they move inversely to bond prices and investors usually flock to the safety of America’s government debt in times of anxiety. Now stockmarkets are in freefall and yields have jumped anyway.
Already have an account?Log in
Continue with a free trial
Explore all our independent journalism for free for one month
Get startedExplore more
Handpicked stories, in your inbox
A daily newsletter with the best of our journalism
America’s tariffs are the worst policy shock in trade history
Reed Smoot, eat your heart out
As Trump’s tariffs take effect, the rest of the world seeks mercy
Countries are offering gifts to the American president. Their efforts will now multiply
Why China thinks it might win a trade war with Trump
The country’s officials vow to “fight to the end”
Where real danger might lurk in chaotic markets
The worry is that wild swings could cause their own damage
Market carnage goes global
As stockmarkets plunge, Donald Trump seems untroubled. That is scary
Trump’s trade war threatens a global recession
Investors are worried. At least the economy is starting from a position of strength
