The trading day has brought a much quieter day than I anticipated–lots of up and down movements, but going no where.
The 10-year treasury remains elevated at 4.43%–although thankfully income issues have taken only a modest hit–much less than I anticipated. I haven’t seen compelling bargains thus far so have not made any buys.
A couple items of note for the next couple of hours.
1st we have a 10 year treasury auction occurring in about an hour (noon-central time). It appears to be about $39 billion being offered.
Then we have the FOMC meeting minutes being released at 1 p.m. central. This should take a backseat to all the tariff news, but you can’t ever tell.
I’m going to just sit back and watch and see what happens—and bargains etc.
Users who liked this:
From ZH:
The President wrote on his Truth Social account:
Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.
At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.
Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, …
…I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.
Thank you for your attention to this matter!
He also touted that many countries were coming to ‘kiss his ass’. I think that alone will put-off any hope of China making the deal he wants, and that he does not want the deal when he uses such demeaning terms. Or, it is possible that he has painted himself into a corner.
I’m a numbers guy trading based on whatever happens. Some of the political posturing may be useful but it’s hard to separate from those just spouting a partisan bias. That’s something new in trader discussions.
What just happened?
auction must have come back good. That was a whoosh of cash back into FI.
Floating tairiffs paused . Sell! Sell! Sell!
Dan, Had honest thoughts of it being a glitch in the Matrix.
lol seriously.
Here is what many are missing. The trade surplus than China and Japan has provides them with funds that are invested. A good chunk of these go in US treasuries. If we are doing less trading with China, they will buy less treasuries. If you do have the money, you cannot buy our bonds. This is not retalation.
So continue going deeper into debt to fund the competition?
China should be very careful.
My analysis from reading WSJ comments and friends and family reactions is that most everyday people are very supportive of the U.S. finally doing something about China. I also spent some time working in Africa and the sentiment there was also very negative to China despite lots of “belt-and road” investment. Given market declines, and the globalist funded financial media messaging, one would expect more people to be blaming the U.S. maybe that was the initial reaction last week but calmer heads are now saying you know what, this is long overdue and if China wants a fight, we are going to fight and if our portfolios take a hit that just makes us want to fight more. America is a country of fighters and patriots – and if we get united – beware!
Good points Dan–would seem that they have the most to lose–but on thje other hand we don’t need the inflation that is likely to come.
Agreed.
do you posts your trades anywhere?
Russell A – No I don’t, but I have my holdings (approximately–sometimes I miss 1, but find it and add it in–the list is very close).