Bloomberg Intelligence Stocks Rally, Bonds Slip on Trade Deal Hopes
12 snips
Apr 8, 2025 
Ira Jersey, Bloomberg Intelligence Chief US Interest Rate Strategist, dives into the economic ramifications of tariffs and their shockwaves through the bond market. He reveals how U.S. Treasuries are experiencing wild swings, leading to increased yields. The discussion also touches on the impact of potential trade deals on stock market dynamics and the challenges for companies like Apple facing tariff-induced selloffs. Jersey also highlights the intricate balance of navigating investment strategies amid ongoing volatility and evolving market conditions.
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Bond Market Volatility and Liquidity
- Bond market volatility is often a liquidity issue, worsened by dealers' reduced risk appetite.
- Regulatory changes, while enhancing institutional safety, can sometimes compromise market liquidity.
Dollar Dominance and Tariffs
- Tariffs raise concerns about reduced foreign demand for US Treasuries and the dollar's reserve status.
- The dollar's dominance, however, relies on stable alternative currencies with sufficient debt/assets.
Tactical Buying Opportunities
- Buy during times of market panic and fear, as seen during recent sell-offs.
- Consider the market's overreaction to recession fears, as there are still positive aspects to the US economy.