Flood of inflows comes as money managers fret over Donald Trump’s policies
Trump’s administration has expressed more tolerance for the economic fallout from tariffs than expected
Premium investors’ demand to hold riskier debt jumps to highest level in six months
Treasury yields have declined amid signs US economic growth is slowing
In 2022, Bloomberg’s total return Tips index lost almost 12%, even though US inflation hit 6.45%
Centre-right leader Friedrich Merz set to become Germany’s next chancellor
Sentiment among businesses and consumers cools sharply as tariffs and inflation take a toll
Tariffs, trade wars and plans for big tax cuts could all rattle investors in US Treasuries, but it’s a resilient market with few alternatives
Beijing has been seeking to hold American debt through lower-profile accounts and diversifying into other assets
Also in today’s newsletter, JD Vance gives investors something other than tariffs to chew on for a change
Not so fast
Debtcon 1
A rise in Bund yields could add pressure on other markets around the world
The weird financial dance between Taiwanese life insurers and US homebuyers
And why it could blow up in everyone’s face
Debt rankers appear to have been more coy in recent years on risks of developed economies than emerging markets
Risk of a systemic financial event stemming from bank purchases of the country’s bonds is low, analysts say
US Treasuries, traditionally a haven asset, have become a riskier, more volatile bet
Level last seen in 2002 as tech-fuelled equity rally throws up red flag on ‘Fed model’ for comparing valuations
US central bank will wait for more details of Trump’s policies before resuming cuts, says bond manager’s investment chief
There is a notable — and rising — risk of financial turmoil if the new White House does anything to spook investors
Easing underlying US inflation and strong bank earnings boost equities
Is Britain mismanaged, or just copying the US markets?
Adventures in kitchen-sink bond market indicators
Plus: what’s the point of stablecoins?
