German bonds increase when the US Treasury protrudes with the sale

Global bond markets were compressed on Wednesday when mutual Mutual President Donald Trump tariffs He remained investors seeking security in new areas – including German debt.

American treasures are sold On Wednesday as a new wave of duties came into force and China and European Union announced fresh stock with retaliation with yield on 10-year-old treasury The last time they saw that 9 basic points above are 4.352%.

Bond yields and prices move in different directions as investors require a lower bond price and higher loan profitability to borrow the governments they see as more risky possessions.

The cost of borrowing the European government has also increased throughout the Atlantic. By 15:55 in London, Italian A 10-year yield increased by 2 basic items and yields on British 10-year-old State bonds known as Gilts increased by 12 basic points.

A 30-year-old gilding The sunrise increased to 30 basic points at one point, noting the fresh 27-year maximum, and was the last to 18 basic points.

Gild yields not only suffer from transfusion from moving in the Treasury, but also the gilded market, usually sensitive-in comparison with other full-fledged bonds-to-catalysts, which cause yields, taking into account stretched stocks from hedge funds, Diana.

“It’s not too strange to see more volatility in gilding than other (developed) state bonds with risks and very uncertain world background. In addition, the fiscal picture is stretched in the UK, perhaps the tolerance of investors,” she added.

Germany raised a tendency as its 10-year collectionIt is considered as a benchmark for the eurozone, traded at 7 basic points below.

The short dated bond in Europe, meanwhile, has grown in price. Yield on two -year government bonds in France. Italy and British There were 9, 6 and 4 basic points below. Yield on Germany 2-year-old packages 12 basic points decreased.

“One of the factors that people reflect from the Treasury is a permanent topic of the departure from the US dollar, and it becomes less trusted,” Ken Egan, Senior Director of the KBRA credit rating agency said on Wednesday. “If you follow this, one of the ways that can be manifested is the structural owners of the debt, the reserve executives in China can move away from treasures in response to US politics”

Egon added that secondary investors also stepped back from the US Treasury, which are usually regarded as traditional assets of a safe shelter, given the changing geopolitical climate.

“Different forces diverge because you have inflation problems and rapid rethinking of the Treasury on them, but on the other hand, you have weak demand and growth, and more decreased value is estimated,” he said CNBC.

On Wednesday, German bonds are not synchronized with a long-dated market as they are considered as an alternative security game, as investors-still stunned by Trump’s actions, wait for greater clarity, he said.

Egon also noted that European bonds with smaller repayment terms are increasing at the cost as they are more dependent on politics, and traders want to record at profitability, as a more global decrease in the interest rate.

“Traditionally, you may have entered the USA during the volatility, but this US history. Germany benefits from a wider flight into quality. The country has already told the market what it will do, there is clarity about what its way will look like,” Egan added, referring to Berlin, which refers to Berlin The last passage A huge financial package across the infrastructure, climate and protection.

In A note On Wednesday, Frey Bimish, Chief Economist TS Lombard, compared the spike in the US Borrowing Crisis Crisis in the UK 2022 “mini -budget” which, which, which rocked the country’s pension funds and led to Intervention on emergency market Bank of England.

“A truly disturbing in the negative turmoil is that they push inflation and at the same time destroy demand, destroying the potential of bond hedge. They are capital fighters,” she said.

“The problem here is not who is right or not in relation to the long -term consequences of tariffs These types of shocks. And as soon as this story begins at the price, the risk arises in financial accelerators, as it happened in the UK with the LDI crisis. “

Alex Brazier, head of the global investment and portfolios in BlackRock, said Squawk Box Europe on Wednesday that the last months have been reminded for investors that “we are in the New World.”

“This is not a situation where a classic broad stock index, a wide bond index, a set of recruitment and charge,” he said. “Looking at the basics of the US bond market, we have several technical ones, we have early signs of stress on the swap market that are watching closely.”

Meanwhile, on Wednesday Wednesday, Susan Striter, Cash and Markets in Hargreaves Lansdown, CNBC reported that some European bond yields rose up, despite the increase in interest rates in the region.

“This is probably because investors sell their positions in European bonds to buy the US Treasury, given that they offer higher yields,” she said. “However, the US Treasury yield falls back again, and the situation remains very flowing.”