While tech troubles are serious enough, the bond market is being rattled by Trump’s escalating attacks on Fed Chair Jay Powell. Kevin Hassett confirmed that Trump is actively seeking ways to fire Powell ahead of the end of his term in May 2026.
The 10Y is testing its 100-day moving average again, sending the 2s10s to 60 bps – a clear break out in every respect. This is a very tough scenario for equities and could easily result in lower lows.
Higher yields, in combination with a weaker US dollar, support the observation that Trump’s trade war and policies are leading investors to shun the greenback and US treasuries.
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