• Treasury Secretary Scott Payette denied this chaos in the bond market The so -called so -called deals that forced President Trump to put a global trade tariff to stop for 90 days. Instead, Pesin said, this was Trump’s plan all the time.

Treasury Secretary Scott Bessin denied on Wednesday that the fluctuations of the bond market forced the president to put Stop for 90 days on most commercial tariffs.

After President Trump announced that most of the customs duties planned for American trade partners will not come into effect, pending more negotiations, were asked by journalists at the White House if if Liquidity And questions about whether the cabinet is They were losing Trump’s safe situation has pushed partial retreat.

“This was driven by the president’s strategy,” the treasury minister said. “I was running and I had a long talk on Sunday, and this was his strategy all the time.”

The shares jumped after Trump announced a 90 -day stop, as most countries (except China) will be returned to a 10 % basic tax on imports.

“This was the news that we and everyone are in the street [were] Waiting that pressure on Trump takes his own life. Note Wednesday afternoon. “The height of the eye in the return for 10 years was too much more than necessary to carry its plan on the Harmjdoun tariff he sustained in the middle of the night. Now we expect huge negotiations in all fields in the coming months, including China in the foreground and the center as a larger wild card.”

Earlier, BESSENT claimed that the bond market will calm down as bond deals with extreme benefit are not binding. He also pointed out that this type of discounts was normal and expected.

A selection of hedge boxes benefit wonderfully from the so -called Trade foundationAnd, which includes severe borrowing to take advantage of small contradictions between the treasury and future contracts associated with these bonds. Usually, this helps to keep it Money markets buzz. When trade relaxes for $ 1 trillion, the returns are rising as the market is struggling to accommodate a huge increase in the supply of the cabinet.

in interview with Fox Pesin said he watched a similar story playing several times during his career in the hedge box.

He said: “There is one of these devastating cramps that now occur in the market.” “It is in the fixed income market. There are some very big players who suffer from the losses that must be clarified.”

Initial investors accumulated to the treasury bonds last week, such as the stock market Decline After President Donald Trump revealed the sweat.Mutual definitions“Which came into effect on Wednesday morning. Early on Monday, the return on the standard ceramic memorandum decreased for 10 years to less than 4 % for the first time since October, a decrease from about 4.8 % in early January. However, the sale of the fixed income, however, the revenue soon followed over 10 years-which rises with a request from the match in the increase, where the fighting was overcome. CNBC.

Bessent tackled concerns about chaos in the fixed income by saying: “I think there is no systematic thing about this. I think it is uncomfortable but normal in the bond market.”

The foundation trade can affect real estate loans and car loans

Market monitors were martyred with many possible reasons for the bond -confused sale. As a commercial policy suspicion It prevails, investors can be desirable to simply keep criticism, similar To the beginning of the Covid-19s. Merchants are struggling to pricing how the Federal Reserve interacts if the global trade war is giving dread Recession– inflation in elasticity besides slowing growth. There is an opportunity for China and other US debt holders in the United States that overwhelms the market with treasury bonds to avenge the Trump tariff.

The evaluation of all these interpretations depends on the circumstantial evidence of what is going on in the markets, said Torston Slikk, the chief economist in the Apollo Special Stock giant, said. luck Tuesday.

However, he believes that the basis for trade is the potential perpetrator. To get hedge boxes to benefit greatly from the small arbitration opportunity, they need to do a lot of borrowing. According to Financial Times, It may take up to 50 to 100 times of the leverage, which means that 10 million dollars of capital, for example, can support one billion dollars of treasury purchases.

During severe fluctuations, this leaves hedge boxes vulnerable to margin calls, born in the mediator.

He said: “It is very unusual that you have long -term interest rates when the stock market rises.” “This tells me there [are] Some of the forced sellers who are forced there. “

This is a source of concern because the treasury revenues are long -term, especially 10 years, the basis for Mortgage ratesCar loans and other types of borrowing costs are common throughout the economy.

“You don’t want long -term prices for non -economic reasons,” he said.

To prevent this during the first days of the epidemic, the Federal Reserve had to buy $ 1.6 trillion of the treasury for several weeks. The central bank has also temporarily extinguished the bank’s capital requirements after the global financial crisis. Exemption The locker and banking reserves enabled the so -called supplementary lifting rate of lenders to buy more American debts.

While insisting that the market will be fixed with hedging boxes, Bessent indicated on Wednesday that it wants to make this change always as part of a wider batch of decomposition.

Update: This story was updated with a longer version of a quotation from Treasury Secretary Scott Besent after President Donald Trump announced a 90 -day stoppage on mutual definitions, in addition to a comment from a note written by Dan Evs Wissam Brandes from the Wedbush papers.

This story was originally shown on Fortune.com

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2025-04-09 18:31:00