On April 22, market analysts said that if the market wants to feel broader market anxiety, it only needs to look at US Treasury bonds. As long-term US Treasury yields begin to rise again as trading unfolds this week, this will keep risk sentiment continuously tense. At present, traders and investors are gradually losing confidence in reaching any trade agreement in the short term, and US assets have been severely hit. It is the bond market that has forced Trump to make concessions on tariffs. However, after experiencing two weeks of chaos, the current situation is no better than before.
Essentially, Trump and the Federal Reserve must have one side make a concession, playing a "chicken game". If Powell and his colleagues take action to urgently purchase US Treasury bonds, this will bring some short-term relief. However, the signal sent by this move is that Trump's tough stance on tariffs will continue longer. (Jinshi)
