Liquidity worsens in $29tn Treasury market as volatility soars

Open the newsletter to watch the White House for free

Your guide to what the American elections mean 2024 for Washington and the world

Treasury bonds fell on Friday in volatile trading, as market participants warned of increasing strains in the market, worth 29 trillion US government debts.

The Ministry of Treasury’s return for 10 years increased to 0.19 percentage points to 4.58 percent on Friday, amid a deep decrease in the original, which is traditionally considered the first resort in the global financial system.

The return later reflected some of these gains for trade by 4.48 percent after she told the head of the Federal Reserve Bank in Boston Susan Collins the Financial Times that the US Central Bank will “completely prepare” to spread its fiery power to stabilize financial markets in the event that the conditions become unorganized.

President Donald Trump’s policies have shook the wrong tariff the belief of investors in making US policies and economics, which sparked migration of American assets. The return has increased for 10 years about 0.5 percentage points this week, which is the largest rise since 2001, according to Bloomberg data.

While Trump retracted the so-called mutual definitions in uncomfortable countries earlier this week-he agreed to a 90-day hiatus for most major American commercial partners-he lost sharp lists on Chinese imports.

“There is real pressure around the world to sell treasury bonds and corporate bonds if you are a foreign pregnant woman,” said Peter Chore, head of the American macro strategy at the Securities Academy. “There is a real global concern that they do not know where Trump goes.”

“We are worried because the movements that you see refer to something else other than the normal sale,” said one of the European Bank CEOs at Prime Services, a section that facilitates the benefit of trading to companies including royal dealers and hedge funds. “They refer to the loss of complete faith in the world’s most powerful bond market.”

Traders said that weak liquidity – the ease that investors can buy and sell the treasury without moving prices – exacerbated the market movements.

JPMorgan analysts said that the depth of the market, which is a measure of market ability to absorb large trading without significant price transformations, has exacerbated significantly this week, which means that small deals were moving significantly.

While he traveled to his resort in Mar Lago on Friday, Trump said: “The bond market is going well. It was a small moment, but I solved this problem very quickly.”

When he was asked to what extent was the bond market issued in a 90 -day stoppage period of mutual definitions to uncomfortable countries, the president suggested that it did not do so, although he said earlier in the week. “I want to put the country in an incredible economic position. It is the place where we should be,” he said.

The head of the treasury trading in a senior director of bonds in the United States said that liquidity is “not large today” and explained that “the depth of the market was 80 percent less to the regular averages” on Friday.

“If a severe breeze explodes in the treasury market today, the prices will move a quarter point.

Treasury fluctuations on Friday were accompanied by a decrease in the dollar.

The currency strength scale against their main peers fell 1.8 percent on Friday. Both sterling, Japanese yen and Swiss franc made great gains.

“We are the favorite currency. We will always be. I think the dollar is huge,” Trump said of the dollar.