Investors turn away from long -dated debt

The sale in the world bonds is accelerated as the US and the Presidential Tax Bill Donald Trump, which has imposed investors’ financial problems around the world.

Activities such as lowering credit ratings or budgets that risk expanding the deficit tend to bring fiscal front problems and the investor center, forcing them to redo a long end, said Rong Ren Gu, portfolio manager, fixed profits, Eastpring Investments.

While Trump was unable to shake off the GOP dissidents to support his wide tax account that could increase the debt in the US aboveYa predicted 3 trillion to $ 5 trillionIt looks like caused a global section.

“The markets do not consider” a big, beautiful tax bill “Trump”, “said Vishno Varatan, head of Mizuho Securities. “USST was beaten in an ugly sale.”

US 30-year-old treasury The yield made its way over the key 5% mark on the second consecutive day, violating the level reached in November 2023. Currently, it ranks 5,08%. Landmark 10-year-old treasury Since the beginning of the week, he has risen to 15 basic points.

In April, in US assets in US assets in US assets in US assets, in April, he is largely borrowed by the fact that investors are confident in US assets.

When investors dumped the US Treasury last month, they turned to bonds in Japan and Germany. This time the sale of the Treasury is accompanied by investors who go to bonds in several major markets.

Yandalon’s yields on Japan 10-year-old government bond This week, it rose to 9 basic points to 1.57%.

The rapid development of the Japanese yield curve is borrowed from several reasons, but the key is structural. Japanese insurance companies that have not previously been engaged in long -term bonds to comply with certain rules on solvency, no longer do so, as they are heavily complying with regulatory criteria, Bank of America reports.

In addition, the Bank’s inclination to strengthen the monetary policy that is facing the Asian country’s fiscal troubles, also has a hand in bonding, Varatan said.

The sale in Japanese government bonds creates a big problem for US sovereign debt. “Having made Japanese assets an attractive alternative to local investors, it calls for further getting rid of the United States,” George Saraveles wrote in the Deutsche Bank FE -strategy.

German government bonds – known as Bunds – are also ejected. The yield of 30-year German debt increased more than 12 basic points, and the 10-year yield increased by 6 basic points.

“Removing a German loan brake in tandem from continental stretching, hinting at the end of prejudice in Europe and the revival of regional growth prospects, perhaps catalysts for the process (sale of bonds),” said Philip McNihols, Asia strategists global macro.

German bunkers also put pressure on a wider deficit, which is likely to be structural, said Varathan Mizuho Securities.

This week, a 30-year government government bond has risen to 12 basic points, and the 10-year yield increased about 7 basic points.

“Investors do not really have much love over the long -length bonds,” said Steve Sosnik, Chief Strategist CNBC.

Concerns about global inflation are also a “killer” for longer bonds, said the porch, adding that shorter bonds will usually affect the Central Bank’s policy, while longer debt affects investors’ expectations about the future of the economy.

Bonds in some new markets thwarted a broader trend while out.

The 10-year yield of India and China’s bonds has decreased as they are more focused on domestic markets, and partly due to capital control, McNicholas said.

On Monday, a 10-year government bond in India has fallen by about 2 basic points, while China’s 10-year yield has also decreased slightly.

“Foreign investors and global factors are much less relevant determinants for the appropriate yield curves,” he said.