Germany has long taken flack from Wall Street and financial capitals around Europe for the extreme fiscal conservatism that has kept the country’s debt levels low. But as global markets convulsed this week, investors rewarded Germany’s caution by snapping up its government bonds, which are known as bunds. Investors have reeled after President Trump imposed 10 percent tariffs on nearly …
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‘This is Not Normal’: Trump’s Tariffs Upend the Bond Market
The bedrock of the financial system trembled on Friday, with government bond yields rising sharply as the chaotic rollout of tariffs shook investors’ faith in the pivotal role played by the United States in the financial system. U.S. government bonds, known as Treasuries because they are issued by the U.S. Treasury, are backed by the full faith of the American …
Read More »Bond Market Sell-Off Prompts Bank of England to Make Unusual Move
The Bank of England ditched its plan to sell some of its holdings of long-term bonds next week, after U.S. Treasuries led a rout in the global government bond market. Stock markets have taken a hit since President Trump announced steep tariffs on dozens of countries, but the turmoil also swept into the bond market this week. Yields on U.S. …
Read More »Inside Trump’s Reversal on Tariffs: From ‘Be Cool!’ to ‘Getting Yippy’
For the past week, President Trump has been urging calm in the face of the financial chaos that he created and resisting calls for him to rethink his approach. “I know what the hell I’m doing,” he told Republicans on Tuesday as the massive tariffs he had imposed sent global markets into a tailspin. “BE COOL!” he said in a …
Read More »Bond Sell Off Raises Questions About U.S. Safe Haven Status
A sharp sell-off in U.S. government bond markets and the dollar has set off fears about the growing fallout from President Trump’s sweeping tariffs, raising questions about what is typically seen as the safest corner for investors during times of turmoil. Yields on 10-year Treasuries — the benchmark for a wide variety of debt — shot 0.2 percentage points higher …
Read More »How Fed Rates Influence Mortgages, Credit Cards, Savings and More
The Federal Reserve is expected to keep its key rate steady on Wednesday, after a series of cuts that lowered rates by a full percentage point last year. That means consumers looking to borrow are likely to have to wait a bit longer for better deals on many loans, but savers will benefit from steadier yields on savings accounts. Economists …
Read More »Federal Debt Is Now Worrying Even Progressives
The 119th Congress began, as it so often has in recent years, with calls from Republican politicians for wrestling down the national debt, which is near a record level relative to the size of the economy. But this time, the G.O.P. had company: Progressive economists and budget wonks, who have often dismissed finger-wagging about debt levels as a pretext for …
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