Bond gives tank worldwide when investors cover

Global bond yields announced in connection with US tariff Donald Trump last Wednesday when investors hunt on Any safe shelter Among sales of stock market – But economists warn that the rally may not be stable if inflation is concerned.

Yield on Germany 10-year collection . Last month yields stretched above 2.9%as markets were attracted to Fiscal costs In the biggest economy of Europe. The yield is moving in the opposite direction of prices, with a smaller crop, which indicates more demand for government debt.

“The Bund rally promotes tightening financial conditions,” Rabobank analysts said on Monday morning.

In the latest market steps, they added: “If Trump had to change the course in terms of ads last week, it can serve as a modern panic in the market, but it is unlikely to prevent slowing.

Government borrowing costs also collapsed in Asia. Japan 10-year bond yield According to economists in Deutsche Bank, on Monday, a three -month minimum came out of its largest weekly decline.

State, 2-year-old treasury yield Since September 2022 fell to the lowest level A 10-year yield Six -month low. Pointing to the current level of volatility, US yields again started trading again on Monday, with 10-year-old The Treasury gives almost 14 basic points at 12:11 pm.

Investors disassemble extreme and unpredictable tariff policy and whether it will lead to Global growth slowinga American recessionEither changes in the Central Bank policy.

“” The big flight for money continues when investors are looking for asylum for their money amid a tariff storm, “the head and markets in Hargreaves Lansdown said on Monday.

“Banks are regarded as barometers for economic health, and given steep losses, red lights blink about the upcoming global recessions. These warnings are also found in the bond markets. The fall of the treasury is a sign that the likelihood of recession is increasing.”

George Lagorias, Chief Economist forvis Mazars, said Bonds still act as a safe shelter, while the “overflowed global stock market” distributes volatility.

“The bonds are in a very bad bear market since 2021, it’s a solid time they are cohesive,” he said by phone CNBC.

He added that there were several reasons why the bond rally could not be stable.

“One of them, when everything stabilizes and does not need to run to security. The events are very conditioned now, and within a week everything may change. Inflation still exists, it’s still a problem, so you want to be in long -term connections if you are if you Fear of inflation In the US? “” Lagarias said.

“Another, if banks are, to ease the pressure on the balance and use the bond action, bring the bonds out of” attraction “in” available for sale “, in fact, means more bonds offering and therefore more pressure on delivery.”

In the end, he said: “We could also see that the central banks confirm their presence, they could do it. They could do it verbally, expand credit, buy bonds, reduce interest rates or say what will happen. If you are traveling on the bond market, you need to pay attention to these catalysts.”

Eric Nelson, Macro -Strateg at Wells Fargo, also emphasized inflation problems among investors.

“In a certain stage, the question arises how many bonds can continue to rally in this environment, given the risk of inflation,” he said on Monday, “Squawk Box Europe” CNBC.

Chairman of the Federal Reserve Jerome Powell “signaling no interest in the speed of reductionNelson added.