Donald Trump finally decided to take the provarbial “win” in the trade and the stock market gathered almost 3000 points.
You can thank the bond market, with an assistance from the Secretary of the Treasury, Scott Besent, for making it a reality.
We have a hyper-centered leg in how the stock market market decreased since Trump declared the commercial war around the world, how the bet continued, always demanding high degrees of compensation of our commercial partners, also those faith and rhythm.
Trump’s commercial intransigence was a reflection of his own established desire to level the playing field, finishing our perpetually large commercial deficits with the world.
Also certainly on the back of his “play art” mentality was an attempt to maximum leverage in negotiations.
It was also prompted by two of the most aggressive and protectionist advisors who have ever set foot in the White House: Howard Lutnick, the Secretary of Commerce, and Peter Navarro, who owns the title as the main lawyer of the president.
He left aside, until recently, there was Scott Besent, a Wall Street financial veteran who was looking for a middle ground, making deals with countries but not participating in an absolute war.
Hawks seemed to be firmly in control, even when markets around the world continued to crratitate, US shares. UU. They lose billions of dollars in value.
Trump continued to ignore the EU olive branches, which he publicly declared that he wanted zero tariffs with the US. In many goods; Trump even continued playing with Israel, one of our closest allies, after Prime Minister Benjamin Netanyahu told him that he would eliminate all tariffs on US goods, would eliminate the commercial deficit with the United States.
That long game came to an end on Tuesday night in the form of a defeat in the bond market for the ages.
Main Street can resist some stock market falls.
But the United States has $ 36 billion in funds, largely in foreign hands, which we use to finance government operations.
The bond market is also the plumbing of the economy because it also establishes interest rates in the loans of consumers and commercials.
If the United States cannot sell your debt, you cannot pay for things such as Social Security, the military or plug our huge deficit.
In other words, when bond prices fall and their interest rates increase, it could mean an economic disaster.
That is what the bond market was pointing out Tuesday night, real panic as the 10 -year bonus yield to 4.51%; The 30 -year bonus yield increased above 5%.
Someone was downloading bonds and doughs in the middle of commercial agitation.
A recent treasure auction was not so well, which adds to the divis rise.
Market experts speculated that coverage funds were unrolling some complex operations.
Worse, the CEO of an important financial institution told me that one of our greatest foreign treasury bonds, the Japanese, were downloading the debt of the United States in large quantities.
Many fingers pointed to China, our long -term adversary economically and militarily, but it was a friendly country, selling in large quantities and sending interest rates to dangerous territory.
They told me that this kind of instability clearly caused an impression on Besent.
What happened next is one for history books.
It was Berry, not Lutnick or Navarro, who hero a press conference on Wednesday saying that our world, except a hyper beligente China, had ended, or at least in the roast.
He attributed it to Trump’s negotiation style, playing the long game and taking people to the table to a discussion that reduces commercial barriers.
It is a victory that Wall Street is pleased by Trump Tok.
