Bond revenues around the world with investors investing

Global bonds that were moved in the wake of the announcement of Donald Trump’s tariff last Wednesday, where investors hunt Any safe havens middle Selling stock market But economists warn that the assembly may not be sustainable if the fears of inflation weigh.

Returning to Germany 10 years Bond – The standard for the euro area – from 2.72 % on Wednesday to less than 2.6 % on Monday afternoon, although it was placed up to 2.65 % at the end of the session. The return extended over 2.9 % last month, as the markets rushed to Financial spending boom In the largest economy in Europe. The return moves in the opposite direction of prices, with a decrease in the return, indicating an increased demand for government debt.

“The Bund gathering accommodates the tightening of financial conditions at the level of the region,” Rabobank analysts said on Monday morning.

They added in the recent market movements: “If Trump reflects the path in relation to ads last week, this may lead to calming the current panic in the market, but it is unlikely to prevent slowdown. This is due to the fact that this step will only emphasize the inability to predict the current policy that, in itself, is negative for confidence and risks.”

Government borrowing costs in Asia also declined. Japan 10 -year bond returns On Monday, he achieved its lowest level in three months, as the largest weekly decrease since 1998, according to the economists in Deutsche Bank.

Stateside, and Treasury bonds for two years He decreased to his lowest level since September 2022, with 10 years of return At the lowest level of six months. It indicates the current levels of fluctuations, the American revenues began to circulate up again on Monday, with 10 years The cabinet resulted in approximately 14 basis points at 12:11 pm Each time.

Investors analyze an unpredictable extremist tariff policy and whether this will lead to a The slowdown in global growth, The recession of the United StatesOr changes in the path of the central bank policy.

“The big journey to Cash continues as investors seek a shelter for their money amid the storm of customs tariffs,” said Susanna Striter, head of money and markets at Hargreaves Lansdown.

“The banks are seen as standards for economic health, and given sharp losses, the red lights flash around the global recession that is looming on the horizon. These warnings also appear in the bond markets. Falling treasury is an indication that the chance of stagnation is increasingly pricing.”

George Lagarias, chief economist in Forvis Mazars, said that bonds are still acting as a safe haven while the “global stock market” sells fluctuation.

“The bonds have been in a bear market very bad since 2021, and this is the time of the company they gather properly,” CNBC told CNBC.

He added that there were several reasons for not proving that the bond rally was sustainable.

“One of them if things stabilize and there is no need to run for safety. Events depend on the news very much at the present time, and within a week, things can change. Inflation still exists, it is still a problem, so do you want to be in long -term bonds if you are Fear of inflation In the United States? “Lagarias said.

“Another is if the banks are, to reduce the pressure on their public budget, benefit from the bond march, and remove the bonds from” holding to the stage of maturity “in” available for sale “, which mainly means more bonds offered and supply pressures.”

In the end, he said: “We can also see central banks confirming their existence, and they can do this orally, extend credit lines, buy bonds, low interest rates or say they will work. If you are leading the bond market, you need to search for these incentives.”

Eric Nelson, Macro Strategic Expert in Wales Fargo, also highlighted inflation fears among investors.

“There is a question at a certain stage, to what extent can bonds to gather in this environment consider the risks of inflation,” he told Squawk Box Euro on Monday.

Federal Reserve Chairman Jerome PowellIt indicates that there is no benefit in lowering prices“Nelson added. If we go to a large extent, it becomes the shock of pure demand and enlarged concerns come out of the window, but the main date of viewing is now April 9, when the next station enters the definitions.”