ACTV - Rates Spark: Back To Tariff Headlines, But Fiscals Still Matter
2025-05-27 03:25:00 ET
Summary
- Long-end yields are experiencing some relief, but we think US yields will find it particularly difficult to shake off a bearish taint over the coming weeks and months.
- Over the weekend, US President Donald Trump extended the deadline for the newly threatened 50% tariffs on the EU to 9 July.
- Over in the US, a benign PCE deflator will do little to dispel a bearish tilt in long-end US Treasuries if a spike in tariffs remains a real threat.
By Benjamin Schroeder, Senior Rates Strategist ...
Rates Spark: Back To Tariff Headlines, But Fiscals Still Matter