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Analysis-Tariffs caused US Treasury market dislocations, raising longer term concerns
  • April 9, 2025

Analysis-Tariffs caused US Treasury market dislocations, raising longer term concerns

The searing selloff in Treasuries this week in response to tariffs caused dislocations in the world’s biggest bond market, as hedge funds unwound some debt-fuelled bets and investors raised concerns about lasting damage to U.S. markets. While the market participants, who include brokers, traders and investors, said the selloff was orderly, indicators such as bid-ask spreads -- or the difference between buyers' and sellers' asks -- were widening on Wednesday. One trading desk said the bid-ask spread was double its normal levels.

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Dollar loses ground against safe havens as markets digest trade war drama
  • April 9, 2025

Dollar loses ground against safe havens as markets digest trade war drama

The U.S. dollar weakened against the yen, Swiss franc and euro on Thursday but also against more risk sensitive currencies such as the Australian dollar, as markets digested President Donald Trump's dramatic reversal on tariffs. Trump stunned financial markets on Wednesday by walking back steep duties on trading partners that had gone into effect less than 24 hours earlier. The U.S. dollar rebounded sharply against the safe-haven Swiss franc and Japanese yen on Wednesday, while Wall Street's main stock indexes leaped as the tariff reprieve brought some relief to investors.

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South Korea, Japan Stocks Surge as US Levy Pause Fuels Optimism
  • April 9, 2025

South Korea, Japan Stocks Surge as US Levy Pause Fuels Optimism

(Bloomberg) -- Stocks in Japan and South Korea jumped the most since August on Thursday as a reprieve in higher US tariffs on most nations lured buyers back to the beaten-down market.Japan’s benchmark Topix index climbed as much as 8.3% while the Nikkei 225 Stock Average rallied 9%. The nation’s 10-year government bonds tumbled as risk aversion eased. South Korea’s Kospi Index soared as much as 5.5% a day after entering a bear market. Across Asia, equity markets bounced back sharply with currenc

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Stocks soar in relief rally after Trump pauses tariffs
  • April 9, 2025

Stocks soar in relief rally after Trump pauses tariffs

Global shares surged and a manic bond selloff stabilised on Thursday after U.S. President Donald Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries. However, the sharp overnight rally in U.S. stocks and the dollar lost steam as a trade war between the United States and China ratcheted up, with investors also perplexed over the flip-flopping of the Trump administration's tariff plans. Following a days-long market rout that erased trillions of dollars from global stocks and jolted U.S. Treasury bonds and the dollar, Trump on Wednesday announced a 90-day pause on many of his new tariffs in a shock reversal.

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