⬅️ In the midst of surprising selling waves that contradict historical patterns... U.S. bonds, which are usually considered one of the most important safe havens during times of uncertainty, began today to raise fears of a selling behavior in global markets
⬅️ Initially, U.S. bond yields for 10-year terms reached their highest levels since February, while yields for 20-year bonds reached their highest levels since early October 2023, and 30-year bond yields touched their highest levels since October 2023
⬅️ Mazen Salhab, Chief Market Strategist at 'BDSwiss', stated in a talk to #CNN_Economics that bond yields are generally affected by two factors: the first is interest rate expectations, just after the anticipated Federal Reserve meeting on June 17 and 18, and the second is inflation expectations that had been relatively controlled until Trump's tariffs came to undermine everything
⬅️ He added, "It seems that U.S. bond yields read that the Fed will keep interest rates elevated for longer than expected, thus reinforcing expectations of continued high inflation, which has driven them to these levels"
⬅️ He explained that indirectly, what is happening in the White House with President Donald Trump's decisions and his trade war forms the second connection to the rise we see today in yields, noting that if they remain as they are, we may not see their impact in the short term, but 'we will definitely see it in the coming years, which means that global inflation will remain high'
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