PausaDeAranceles
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šØINCREDIBLEšØ
š„Trump's DECISION to LOWER and PAUSE the TARIFFS is based on the CRASH of the BONDS and the FEAR of LEVERAGE in the BASIS TRADE
šLet me explain why:
ā ļøFor weeks, Trump said there would be NO delays in the tariffs, even as stocks lost more than $12 TRILLION
ā ļøThen, the bond market collapsed and 12 hours later a 90-day tariff pause was implemented
What's happeningāļø
āŖļøBefore the "reciprocal tariffs" on April 2, the yield on 10-year bonds was falling
āŖļøThis meant that the trade war could continue because rates were falling. As soon as they started to rise, Trump showed flexibility
āŖļøAlso, as the BASIS TRADE (arbitrage of bonds and their futures) became unprofitable for the LARGE FUNDS, which are LEVERAGED, due to the great volatility, the yield on the 10-year bond skyrocketed
āŖļøIt skyrocketed out of FEAR that these funds would GO BANKRUPT and have to LIQUIDATE/SELL their BONDS, creating a snowball effect
āŖļøTrump has made it clear that one of his main priorities is to have LOWER interest rates.
āŖļøEven on April 4, Trump asked Federal Reserve Chairman Powell to "lower interest rates."
What do Trump and the EXPERTS sayāļø
š£Trump himself, after the announcement of the 90-day pause, stated that "I was watching the bond market and it is very complex" "Last night I saw that people were a little dizzy "
āŖļøHe was referring to the liquidations of the BASIS TRADE, where the FORCED SALES of the BONDS (liquidations of leveraged funds) were causing BOND yields to RISE
āŖļøTrump knew that the $800B BASIS TRADE would SKYROCKET bond yields if he did not intervene. He had no choice but to announce the PAUSE of the tariffs
āļø
#aranceles #TRUMP #TariffsPause #PausaDeAranceles #Market_Update $USDC
š„Trump's DECISION to LOWER and PAUSE the TARIFFS is based on the CRASH of the BONDS and the FEAR of LEVERAGE in the BASIS TRADE
šLet me explain why:
ā ļøFor weeks, Trump said there would be NO delays in the tariffs, even as stocks lost more than $12 TRILLION
ā ļøThen, the bond market collapsed and 12 hours later a 90-day tariff pause was implemented
What's happeningāļø
āŖļøBefore the "reciprocal tariffs" on April 2, the yield on 10-year bonds was falling
āŖļøThis meant that the trade war could continue because rates were falling. As soon as they started to rise, Trump showed flexibility
āŖļøAlso, as the BASIS TRADE (arbitrage of bonds and their futures) became unprofitable for the LARGE FUNDS, which are LEVERAGED, due to the great volatility, the yield on the 10-year bond skyrocketed
āŖļøIt skyrocketed out of FEAR that these funds would GO BANKRUPT and have to LIQUIDATE/SELL their BONDS, creating a snowball effect
āŖļøTrump has made it clear that one of his main priorities is to have LOWER interest rates.
āŖļøEven on April 4, Trump asked Federal Reserve Chairman Powell to "lower interest rates."
What do Trump and the EXPERTS sayāļø
š£Trump himself, after the announcement of the 90-day pause, stated that "I was watching the bond market and it is very complex" "Last night I saw that people were a little dizzy "
āŖļøHe was referring to the liquidations of the BASIS TRADE, where the FORCED SALES of the BONDS (liquidations of leveraged funds) were causing BOND yields to RISE
āŖļøTrump knew that the $800B BASIS TRADE would SKYROCKET bond yields if he did not intervene. He had no choice but to announce the PAUSE of the tariffs
āļø
#aranceles #TRUMP #TariffsPause #PausaDeAranceles #Market_Update $USDC
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