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Tariff Drama Activated Equity Market ‘Doom Loop’
Remember: Volatility and liquidity tend to be inversely correlated.
That's part and parcel of the "
I saw some charts this weekend that seemed to suggest that China, Japan, and Europe were all selling U.S. Treasuries last week, and then converting those dollars into their own native currencies, gold, and even Swiss Francs–which then drove U.S. 10-year yields and the dollar down simultaneously. Rather than a coordinated or strategic move, it seemed to be more of a “sell to cover” leveraged trades in U.S. Treasuries, or perhaps to unwind certain carry trades. I am by no means an expert at this, but does that sound plausible to anyone else?
Correction: “drove U.S 10-year yields higher, and the dollar down simultaneously . . .”