Impact of U.S.-China Trade War on Treasury Yields

SOURCE www.cnbc.com
U.S. Treasury yields plummeted as China retaliated against Trump's tariff policies, causing fears of a global recession. Investors sought safety in bonds, pushing yields lower. JPMorgan raised recession odds to 60%. Jobs report showed mixed labor market picture.

Key Points

  • U.S. Treasury yields dropped significantly after China announced tariffs in response to Trump's policies
  • JPMorgan raised recession odds to 60% due to the escalating trade tensions
  • Jobs report showed mixed signals on the state of the labor market

Pros

  • Investors sought safety in bonds amid economic uncertainties
  • Increased focus on global trade policies and their impact on financial markets

Cons

  • Potential negative impact on U.S. and global economies
  • Market volatility and uncertainty