10-year yields in the US touched a low in Asia of 3.88% but have now turned higher on the day as it pushes just above the 4% mark. It comes amid a turn in broader market sentiment with S&P 500 futures also paring losses to be down just 1.5% now. For some context, it was down over 5% in the early stages when the market opened today.
Bottom fishing or dead cat bounce? This is definitely an interesting debate now.
That said, a lot of it will also come down to how tariff developments play out in the next few days. Negotiations? Deals? Exemptions? Delays? Still plenty of permutations and potential scenarios up in the air.
For now, there are some positives with the EU saying they might consider looking into delaying counter-tariffs and also look at alternative measures to hit back at Trump. But with US and China still at loggerheads, that’s one key spot in global trade that will keep risk on edge.
In other markets, the VIX is also down to 47.64 now after having clipped the 60 mark earlier in the day. And in Europe, the DAX is now down just 4% after having opened down by roughly 9% earlier in the day
