2025/04/28 The fatal consequences of tariff policy #比特幣 #BTC #ETH #SOL #JJ比特頻道
The 10-year U.S. Treasury yield once broke through 4.5%, and the U.S. dollar index also fell to a new low since the COVID-19 pandemic. Against this backdrop, Wall Street elites are becoming increasingly pessimistic about the future of the US economy.
The U.S. financial market has been experiencing severe fluctuations recently. U.S. Treasury bonds, which are known as the world's best safe-haven assets, have been sold off frantically, attracting widespread attention from the market. Since Trump announced reciprocal tariffs on April 2, the United States has suffered a historically rare "triple kill" of stocks, bonds, and currencies, with U.S. stocks, U.S. bonds, and the U.S. dollar continuing to plummet.
U.S. Treasury bonds are the core of the U.S. financial system, and the decline in their prices reflects the market's shaken confidence in them. Former U.S. Treasury Secretary Janet Yellen warned that China needs to be cautious about its purchases of U.S. debt, while Federal Reserve Chairman Powell also said that the Fed is facing unprecedented challenges in its 50 years. In this regard, this article will deeply analyze the reasons behind the sell-off of U.S. Treasuries and the chain reactions it may trigger.
To understand the relationship between U.S. debt and the U.S. dollar, you need to first understand the U.S. dollar issuance mechanism. The issuance of US dollars does not rely solely on the Federal Reserve's printing press, but requires corresponding collateral as support. In the past, gold was the main collateral, but now U.S. Treasuries have become one of the most important collateral for the U.S. dollar. U.S. Treasuries account for as much as 67% of the Federal Reserve's assets, which makes the price stability of U.S. Treasuries crucial to the stability of the U.S. dollar.
However, the stability of U.S. debt is threatened by multiple factors. First, the Trump administration’s tariff policy has caused global economic uncertainty, leading to a decline in investors’ confidence in U.S. debt.
#Marketanalysis is for reference only#Doesnot constitute investment advice
