Investors are growing increasingly uneasy about the impact of President Trump’s agenda on the global economy, with a sudden surge in US government debt and falling treasury yields serving as a warning sign. Strategists at BMO Capital Markets note that “worries continue to mount” regarding the performance of the global economy.
According to Hartman and Lyngen, the 10-year yield broke below its 100-day moving average of 4.379% and touched an intraday low just below 4.29%. This is a significant move, as it indicates a loss of confidence in the broader market. The rate has also fallen below its 50-day moving average and is headed towards its 200-day moving average.
This shift in market sentiment suggests that investors are starting to take notice of the potential risks associated with Trump’s policies. With treasury yields at new lows, it appears that investors are becoming increasingly cautious about the economy’s prospects under his leadership.
Source: https://www.marketwatch.com/story/falling-treasury-yields-signal-that-trump-policies-are-starting-to-spook-investors-7a1e4951