MONEY MASTER

 As  Trump’s sweeping tariffs officially kicked in at midnight , the  bond market reacted sharply : 10-Year Yield  surged to  4.516% , before settling around  4.35%  (+4.5 bps) 30-Year Yield  rose to  4.83%  (+5.4 bps)   What’s Happening? Foreign demand jitters : Fears that  foreign buyers, especially China , might pull back from U.S. Treasurys due to the trade war. Hedge fund selloff : Analysts point to hedge funds unwinding “ basis trades ” — a leveraged strategy reliant on price stability in Treasurys. Inflation impact : Tariffs are inflationary, which erodes bond values and raises yield expectations. Upcoming tests : 🗓️  $39B 10-Year Auction  – Wednesday 🗓️  $22B 30-Year Auction  – Thursday  Jim Bianco: “Something has broken tonight in the bond market. We are seeing a  disorderly liquidation .” China has called for dialogue but has made no concessions.  Investors are now watching closely...

Asian equities began the week on a subdued note as high U.S. Treasury yields tested Wall Street's lofty valuations, keeping the U.S. dollar near multi-month highs. Market Performance : MSCI Asia-Pacific Index dipped 0.2% but remains 16% up for the year. Japan’s Nikkei slid 0.9%, still boasting a 20% annual gain. Chinese blue chips rose 0.3%, with most of their 16% yearly gain achieved after Beijing’s September stimulus promises. South Korea's index edged up 0.3% but is down 9% for the year, weighed by political uncertainties and events like Jeju Air’s recent plane crash. Global Futures : EUROSTOXX 50 futures gained 0.1%. U.S. futures saw slight declines, with S&P 500 and Nasdaq futures down 0.1%. Economic Drivers and Concerns U.S. Treasury Yields : Yields on 10-year Treasuries are near eight-month highs at 4.631%, up 75 basis points for the year. Rising yields reflect revised expectations of less restrictive monetary policy, raising concerns about potential impacts on corpo...