Treasury Secretary Scott Bessent rejects panic in the bond market forced Trump to reduce the tariffs

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• Treasury Secretary Scott Bessent rejected the chaos in the bond market On Delevering of the so-called-based trade, President Trump forced the global trade tariffs for 90 days. Instead, Bessent said that this was the whole plan of Trump.

Treasury Secretary Scott Bessent said that today the bond market puts the president’s hand 90-day break in most trading tariffs.

After the announcement of President Trump, the United States did not expect to further discuss the fares of the tariffs planned for trade partners, Bessent was asked by journalists at the White House, asked a shocking increase liquidity crisis and questions about whether there are treasures They were losing Their Safe Shelter status forced Trump for partial retreat.

“It was his strategy,” he said about the Treasury Secretary Trump.

After announcing a 90-day break, the jumps will be transferred back to imports by tax taxes.

Earlier, Bessent claimed that the bond market would calm down as the opening of a high gift artisan, and said that this kind of delevering is normal and expected.

A selected group of hedge foundations is favorably favorable main tradeThese bonds are severely borrowed to borrow heavy borrowing between treasures and small price inconsistencies between the treasures and futures. Usually, it helps to keep it Money markets Humming. When a $ 1 trillion trade was not opened, the market struggle has increased in the supply of mass growth in the supply of the market.

One interview with Fox WorkBessent said he saw a story of a hedge fund repeatedly in his career.

“At the moment, there is one of these bad convulsions that continue in the markets,” he said. “It’s a large big goal player who is forced to make a deparency.”

Investors first picked up the treasures last week as the stock market guest-shaped After President Donald Trump’s sweep “Reciprocal tariffsOn Monday, “Monday, the 10-year treasury note in early days fell from 4% in early January. US debt, per CNBC.

Bessent, concerns about the constant income chaos, “I believe there is nothing systematic about it … I think it is a normal delever on the bond market.”

The main trade may affect mortgage loans, car loans

Market watchers wanted many possible reasons for confusing sales in bonds. As a trade policy uncertainty Reigning, investors can simply be hopeless to save money, similar Covid-19 to the start of the pandemic. Traders struggle to evaluate we can react if a global trade war of the federal stock dilution– Combined inflation with slow growth. There is a chance in China and other foreign owners of the US debt, the market for treasures to retaliate against Trump tariffs.

Appreciating all these explanations, evaluates in the markets, Torsten Sløk, the chief economist of a giant apollo in special capital, trusts in the detailed evidence of Torsten Sløk Fortune Tuesday.

Again, the main trade thinks that the probable guilty is. For Hedgehogs, you need to borrow a lot to earn a significant gain in the opportunity of small arbitration. According to Financial timesFor example, in the capital may be more than 50 million dollars worth $ 10 million, such as $ 1 billion in treasury purchases.

SLØK noted that during excessive volatility periods, hedge foundations are leaving the funds that are sensitive to extracurricular calligraphers.

“When the stock market goes down, long-term interest rates are very unusual,” he said. “It says some distressed, forced sellers there.”

This is a concern, SLØK said, because the long-term treasury product, especially 10 years, is the basis for it Mortgage ratesCar loans and other total debt costs along the economy.

“You do not want long-term degrees to go for non-economic reasons,” he said.

In the first days of the pandemic, the federal reserves had to receive $ 1.6 trillion in a few weeks. The Central Bank temporarily lost capital requirements of capital after a large financial crisis. Freedom Treasures and bank reserves lend to receive more US debt than the so-called leverage rate.

If the market insists, although the risk of hedge funds is continuous to the risk, Bessent Wednesday, this change wanted to make this change as permanent as a more widespread.

This story was first displayed Fortune.com

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