Is It Time to Buy U.S. Treasuries on the Dip?

Moomoo News GlobalApr 25 02:52 ET

Trump's 'war' with the Federal Reserve has permanently damaged the credit of U.S. bonds.

Concerns about the independence of the Federal Reserve have led investors to intensify the selling of U.S. Treasuries, questioning the credibility of Treasuries as a safe-haven asset. Analysts point out that if the Federal Reserve shifts to a more lenient stance on inflation as Trump desires, or if Trump prematurely nominates a 'shadow chairman' to intervene in monetary policy, the Treasury market will decline further.

wallstreetcnApr 25 02:24 ET

New Federal Reserve News Agency: Trump has made it "harder" for the next Federal Reserve chairman.

The market worries that Trump's public belittling and pressure on Powell will leave an indelible "original sin" for Powell's successor. Regardless of who the next chairman is, the independence of the Federal Reserve will be in question. An independent central bank is often seen as more objective and professional, making its decisions more likely to guide market expectations and stabilize the economy. Since President Clinton's era, most U.S. presidents have adopted a stance of "non-interference" with the Federal Reserve.

wallstreetcnApr 24 23:20 ET

The U.S. Treasury's 7-year bond auction was lackluster, with the problem still lying in overseas demand.

The portion of indirect bids representing overseas demand only secured 59.3% of the total allocation, down from March's 61.2%, marking the lowest level since December 2021. This marks the second consecutive auction of the 7-year bond to experience a tail. Analysts say that if foreign demand really collapses, the Federal Reserve will have no choice but to intervene and start monetizing these government bonds.

wallstreetcnApr 24 16:01 ET

Citadel CEO Griffin: Trump's trade war has become "meaningless", damaging the USA's Assets brand and making Americans poorer.

Griffin believes that Trump's actions have tarnished the once "unparalleled" excellent reputation of USA Assets, including US Treasury bonds, the strength of the US dollar, and national creditworthiness. His tariff policies have failed to bring manufacturing back to the USA and have instead made the USA "20% poorer all around," making the trade war "meaningless" and producing no winners.

wallstreetcnApr 23 22:00 ET

Bond giant PIMCO is "shorting": underweighting the dollar!

Investors are increasingly turning to "home country Assets."

wallstreetcnApr 23 21:51 ET