US bonds have the biggest weekly loss since 1982
The decline in the US Treasury market has worsened as investors continued to withdraw from US assets, demanding the returns of long -term effects to the largest weekly height since the 1980s. This decline has begun as a result of the US trade war that has shaken world markets, threatening to bring about an extra blow to the economy by increasing borrowing costs in general. It is also shaded by doubts about the position of treasury bonds as a world -safe haven, as its value decreases parallel to the decline in the stock market, which leads to investors using alternative assets such as Swiss Frank, Gold and Japanese Yen. The yield on US treasury bonds has increased for ten years – which is a benchmark for the cost of everything, from corporate bonds to real estate loans – to 16 basis points to approach 4.6% on Friday, an increase that has half a percentage point since the end of last week, before it partially withdrew from this rise. Effect yield has increased for 30 years, to 12 basis points, by 5%. Compared to the previous crises in the market, if the rise continues over a five -day period, the pace of the market excretion will be recorded during the chaos of the financial crisis in 2008, and it will be the largest since the early eighties of the last century, when high interest rate levels have reduced the impact. “It’s very frightening. We are definitely the risk -free interest rate in the world again,” said Hano Bai, the main strategic expert of the UBS group. And “If you add fluctuation to the risk -free interest rate, it will make all the markets upside down.” The volatile movements of President Donald Trump over Customs duties have led to serious fluctuations in the US government’s guilt over the past week by undermining the trust in the US economy and the direction of US policy. This has caused the erosion of investor’s appetite for US assets, and speculates that the most important royal foreign authorities – such as China – can be withdrawn from the Treasury bond market. There are also discussions about crashes in hedging box transactions and a collective exit from foreign investors. “The problem facing markets is the loss of confidence in US policy,” says Cathy Jones, the main strategy for fixed income at Charles Schwab. She added: “The sudden changes in customs duties policy caused the transactions to dissolve on the leverage, and I removed the buyers from the market.” The dollar has dropped and the withdrawal of foreign investors, the prices of treasury bonds have dropped in collaboration with a sharp fall in the dollar – which has recorded the biggest decline since 2022 – with reference to the withdrawal of foreign investors from the US market. The Bloomberg index of the dollar immediately fell by 1%, increasing the part of the weekly decline to more than 2%, and contributed to the support of foreign currencies in emerging and advanced markets. Investors also used European debt markets to escape the broader unrest, which kept the returns of German bonds as stable during the week, while the return on US bonds jumped ten years by more than 50 basis points. This is the largest relative negative performance of US treasury effects compared to German bonds since 1989, according to the available data. The ceasefire of the fees did not calm the wave of the sale of bonds. The wave of sale continued despite Trump’s announcement of the suspension of many more criminal duties, but he continued to increase his dispute with China, and threatened to make fundamental changes in trade between the two largest economies in the world. The frequency of decline has also accelerated due to the fear of an extensive US budget deficit as the US economy stumbled and Trump continued with its plans to lower taxes. Angelo Manuzus, a strategy of interest rates in ‘Wales Vargo’, said: “To me it seems to me what happens.” Liquidity has many major challenges. Our indicators show that the liquidity of effects for ten years at its most tense levels since the regional banks collapsed in 2023. “