Trump's Suspension of Tariffs Boosts the Recovery of the Bond Market

Donald Trump announced a delay in the plan to impose import taxes, leading to a quick rebound in the bond market on Wednesday at the White House. The suspension of tariff implementation is soothing the financial markets, as long-term bond yields stabilize after previous spikes. Trump's delay in imposing taxes calms the volatility of the bond market. The decision to suspend the new trade tariffs on Chinese goods by Donald Trump has sparked significant activity across the entire market landscape. The previously announced tariff rates included a 104% tariff on imports from China, raising concerns about the global economy. By choosing to pause these measures, Trump stated, "The current bond market is very beautiful." source . Following this announcement, the 10-year U.S. Treasury yield, which had soared to 4.5%, is now experiencing a more stable and gentle trend at 3.9%. This stability reflects a temporary easing of investors' concerns about the potential economic consequences related to trade tensions. The reactions from key financial players indicate a divide. Hedge fund mogul Bill Ackman criticized Trump's policies, asserting, "Our stock market is going down, bond yields are rising, and the dollar is falling. This is not a sign of successful policy." Meanwhile, U.S. Treasury Secretary Scott Bessent suggested that the current financial situation represents a period of "normal deleveraging," implying no immediate concerns about systemic risk. Cryptocurrency volatility reflects the bond market crisis of 2022 Did you know? The reaction of the bond market to the announcement of similar tax impositions is akin to the volatility seen during the UK bond market crisis in 2022, illustrating the globalization impact of finance. Bitcoin (BTC) is valued at $82,386.77 with a market capitalization of $1.64 trillion, indicating continuous volatility. This week saw a 7.93% increase over the last 24 hours, in contrast to a 4.70% decrease over the past seven days, based on CoinMarketCap. Subsequent changes are monitored due to macroeconomic volatility and shifts in the bond market.

Analysts from the research team predict that potential financial changes could benefit cryptocurrencies such as Bitcoin during times of economic stress, as mentioned in the insights from Standard Chartered.