The U.S. agreed to keep the current 10% tariffs on over $200 billion worth of Chinese goods while an agreement is negotiated, but will increase to 25% if no agreement is reached prior to the 90-day deadline.
In the meantime, while trade worries crept back into the markets, other realities came to the forefront–namely fall in Treasury yields, which is signaling that a risk-off sentiment in U.S. equities is taking place with a move to safe-haven government debt.
“The plunge in bond yields … tells us that unlike October, this is a true risk-off move,” said Ed Clissold, chief U.S. strategist at Ned Davis Research Group. “So while it is likely going to get worse before it gets better, the market action is getting closer to the panic selling seen as the market tries to find a bottom.”
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