Analysis-Tariffs caused US Treasury market dislocations, raising longer term concerns
  • April 9, 2025

Analysis-Tariffs caused US Treasury market dislocations, raising longer term concerns

The searing selloff in Treasuries this week in response to tariffs caused dislocations in the world’s biggest bond market, as hedge funds unwound some debt-fuelled bets and investors raised concerns about lasting damage to U.S. markets. While the market participants, who include brokers, traders and investors, said the selloff was orderly, indicators such as bid-ask spreads -- or the difference between buyers' and sellers' asks -- were widening on Wednesday. One trading desk said the bid-ask spread was double its normal levels.

Dollar loses ground against safe havens as markets digest trade war drama
  • April 9, 2025

Dollar loses ground against safe havens as markets digest trade war drama

The U.S. dollar weakened against the yen, Swiss franc and euro on Thursday but also against more risk sensitive currencies such as the Australian dollar, as markets digested President Donald Trump's dramatic reversal on tariffs. Trump stunned financial markets on Wednesday by walking back steep duties on trading partners that had gone into effect less than 24 hours earlier. The U.S. dollar rebounded sharply against the safe-haven Swiss franc and Japanese yen on Wednesday, while Wall Street's main stock indexes leaped as the tariff reprieve brought some relief to investors.