The Bond Market Rout

Greg Peters, Co-CIO at PGIM Fixed Income, discusses the bond market rout this morning. China retaliated to US tariffs with new levies of its own, causing a global market selloff, with US equity futures falling over 2% and European stocks plunging 4%. The selloff has affected various markets, including currencies, cryptocurrencies, bonds, and commodities, with oil prices falling to around $55 a barrel and the dollar weakening. He speaks with Bloomberg's Tom Keene and Paul Sweeney.

Another chaotic day on Wall Street saw stocks whipsawing as investors tried to price the impacts of President Donald Trump’s trade war, with a slide in bonds stoking fears the US risks losing its haven status.

As traders remained glued to their screens for every new bit of information around the repercussions of tariffs, financial markets kept getting jolted. The S&P 500 fell after a brief respite driven by a rally in big tech and hopes the US would reach agreements with its allies. Treasuries dropped, with  30-year yields briefly crossing the 5% mark.

Trump urged Americans to remain calm and continue investing on Wednesday as his sweeping reciprocal tariffs hit, in an indication the White House was closely monitoring market reaction to the levies.

“THIS IS A GREAT TIME TO BUY,” Trump said Wednesday in a post to his social media site. The president also encouraged his followers to “BE COOL” and added his prediction that “everything is going to work out well.

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