The Market Brief
Hey team. US stock futures traded near the flat line overnight on Friday, as a rebound in Treasuries helped temper investors’ concerns over America’s fiscal outlook.
Let’s see what’s ahead for this market!
Macro Viewpoint
The US benchmark remains on course for its worst weekly performance since the selloff following President Donald Trump’s tariff announcements at the beginning of the April.
Recent market turbulence is fundamentally driven by uncertainty, particularly as relates to tariff.
Policy uncertainty can beget a choppier investment landscape, but it can also fuel opportunities to capitalize on the greater dispersion in company outcomes that such an environment creates.
The recent sharp rise in long end yields is primarily due to the deterioration in the supply-demand balance becoming more visible, and we think MOF would consider reduction in issuance amount for 30y and 40y or even buyback off-the-run bonds.
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