Significant downward movements for the yields of global bonds in the Investor search for protection In the middle of the open tariff crisis against large diplomatic blocks such as the European Union, but also with China or neighboring countries like Mexico and Canada.
In the United States, yields have fallen into the 10 -year bonus due to the possibility that the Federal Reserve may have to open the hand And lower interest rates more than once – as the market discounts today – throughout the year following the retail sales data that have evidenced a collapse of 0.9%, the largest in almost two years , when experts expected a contraction of just two tenths percentage. The profitability of T-not It is around 4.47% reflecting a gradual recovery compared to recent weeks.
In Europe, the main debt references in the old continent have experienced variations over the last days with the bund German at 10 years stable over the area of 2.5% while in the case of the Spanish bond it has shown a slight decrease, standing over 3%.
At the same time, the US administration of President Donald Trump has intensified commercial tensions by imposing tariffs on steel and aluminum imports, which has generated some tension among experts. In addition, the Republican has added to this measure the imposition of “reciprocal tariffs” to the countries of the European Union in response to VAT.
Despite all this, in his latest survey, Bank of America, warns that Investors are becoming less pessimistic Faced with the future of the American fixed income market with a percentage that decreases among those who expect this year to exceed 5%yield, while more and more are expected to fall below 4%.
“The US Treasury Bonds would help cover the credit risk and provide investors a liquidity reserve to deploy when volatility creates attractive income and revaluation opportunities of capital, “they expose from Wellington Management and add:” They could offer attractive performance. “
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