Davide by Barbuscia and Carolina Mandl
New York (Reuters) – Sellers selling tariffs in response to the treasures this week, causing dislocations in the world’s largest bond market, some debtor betting and investors have raised concerns related to continuous damage to US markets.
Market participants, including brokers, traders and investors, are ordered to sellers, such as suggested spreads, and the difference in the audience and sellers and vendors and sellers are expanded on Wednesday. A trading table said that the spreading of the proposal was double the normal level.
The treasury product was higher for the day after the sudden U-turn of President Donald Trump, and returned their earnings. In different points during the variable trade period, this week’s increase in productivity exceeded the largest weekly jump since 2001.
Investors and analysts stepped in March 2020 in March 2020, an accident in the treasury market, the federal reservation of the federal reserves by $ 1.6 trillion.
Bill Campbell, the Portfolio Director for the Doubleline Global Bond Strategy, said the terms of the trade are particularly difficult on Tuesday.
Hedgehogs have begun to take advantage of small price dislocations between similar assets, the relative value of hedging funds, goals or debts. The resulting bank was the balance sheets.
“With the sale of potential stress in the system and then continued in Europe and then, you started using potential stress in the system, and then you started to run the risk of the bigger things.” Said Campbell.
A market participant that requires an anonymity to talk, as some banks withdraws, some customers said that some customers are more funded on Wednesday. The person added that everyone was a signal for signs of stress while working as needed as necessary.
29 trillion US dollars trust in him to enter the treasury market, the global financial system bedroom, investor and companies, financing and low-risk assets.
Dislocations in the market can lead to a larger financial stability. It can also hinder the ability to follow the agenda of politicians, because the rapidly growing governments in fertility have been expensive for the debt – a phenomenon called the bond afraent.
The market is a sign, after removing tariffs, Trump said, “The bond market is now beautiful,” Trump said.
Nevertheless, the dislocations in the treasury asked some market participants who asked the loss of US assets could last a long time.
“Deutsche Bank Analysts” said in terms of “the results of harm have also been harmed … and the results of a relative economic growth and a foreign investor will be ready to finance US external failure”
Relative value
Hedgehogs became a great player in the treasures, usually using the lever in short-term repo markets, using the borrowed to return to securities. Hedgehog foundations, financial research was $ 2.5 trillion in the repo market in December in December.
According to market sources, some of these trades were pressured as the market was sold, and in addition to the collateral, additional collateral is under pressure.
“In such changing times, a high-sleeved portfolio may want to join a hedge fund to a hedge fund and make a capital call to get additional collateral,” said Symon Drak-Brockman, Special Credit Manager
“When you do not have money, these hedgeons begin to cancel businessmen,” he said.
As the trading table, a trading table, which is so risky for the spread of US treasury trade, as the productivity of the treasury increases. This trade is a bet on expanding the difference, derivative and treasures between the difference between the popular, interest rate due to popular bank regulation expectations among the investors.
Traders have not seen a price difference between the main trade, which is the main trade, which is the main trade between the main trade and the price difference between its derivative and its derivative bond.
“We have seen more (obvious) activities in SWAP … Some money futures have reasonable activity, but we do not see great stress there,” he said.
Campbell said he started trading in New York on Wednesday morning.
“Dealers still saw that they were still tapped and the markets began to regulate without the need for any intervention,” he said.
The situation saw a healthy demand that facilitates the government paper, especially foreign investors, especially after a 10-year note auction.
Then, on Wednesday, Guard Trump, who holds market players, left investors who were suspended in the tariffs in some countries and in the future.
“The age of the United States ended with the exclusive (at least financial),” said Westpac analysts.
“Ultimate riskless curve, US treasures, ‘gold hostage’, the tool of any investor, which is up to Tennessee Tokyo, can be challenged.”
(Davide Barbuscia, Carolina Mandl, Shankar Ramakrishnan, Chuck Mikolajczak and Paritosh expensive; regulation by Sri Navaratnam)
