Investors digest the consequences of Trump prices

The yields of the US Treasury continued to fall on Friday, with a 5 -year -old treasure yield down well below 4%, after China retaliated against the aggressive deployment of the “reciprocal rate” policy of President Donald Trump, which made investors are demolishing in obligations for the safety of a global recession.

The 10 -year -old treasure yield fell on 17 base points at 3.882%, falling at the lowest level since October. The yield had exceeded 4.8% earlier this year in the hope that Trump would increase the US economy with tax discounts.

The 2 -year treasure yield lost more than 22 base points to negotiate 3.50%. A basic point is 0.01% and yields and prices are changing in opposite directions.

China early Friday on Friday said that it would take a price of 34% on all the United States, from April 10, after Trump’s Blitz earlier in the week, which would mean an effective rate on certain China goods of 54%.

Investors have flooded treasury bills for security in recent days, pushing the yields lower, after the deployment of Trump’s price was signed on Wednesday evening. The plan, which has established a reference rate of 10% at all levels, struck more than 180 countries and marked the world markets.

The rate of 10 years has dropped since last week to around 4.25% on fears that a trade war could increase prices since its late week and slow down the economy in recession.

JPMorgan Thursday evening, noted the chances of a recession this year at 60%, compared to 40%.

“These policies, if they were supported, would probably push the United States and perhaps the world economy in the recession this year,” said Bruce Kasman, a global JPMorgan economist.

Investors will also look closely at the non -agricultural payroll report, which should be published on Friday. Economists interviewed by Dow Jones expect the non -agitated wage bill increases by 140,000 jobs and that the unemployment rate is stable to 4.1%. The report will offer an overview of the health of the American economy in the midst of fears of slowing growth.

“Indeed, with the assembly of recession fears, a lower than expected print could be a nail in the coffin of the American economy,” said Julien Lafargue, chief strategist of the Barclays Private Bank market. “Unfortunately, a more encouraging reading could easily be rejected as” obsolete “given the prospect of important prices that strike the American labor market.”