It’s been three months since bond yields soared, as investors sold off U.S. government debt in response to President Donald Trump’s so-called reciprocal tariffs. The 90-day pause he announced afterward expires July 9, with potentially significant implications for the second half of the year.
Investors have prepared for 10% global tariffs, according to Robin Marshall and Sandrine Soubeyran, both directors of global investment research at FTSE Russell. But they said in an interview Friday that if Trump reverts to tariffs in the 25% range, “there’s still a risk of flare-up,” as Marshall put it.
While stockholders recovered their April losses and saw markets hit new highs, fixed-income investors bounced between risk-on and risk-off periods during a volatile second quarter.
“There’s proof now we are starting to see that all these fluctuations — all these [policy] changes back and forth — are really denting confidence,” Soubeyran said.
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