Picture This: Trade Tensions and Uncertainties Point to Continued Market Turbulence

What we know

• The US decision to pause the reciprocal tariffs except for mainland China led to a partial reversal of the rise in yields. 
• Market concerns about a potential reduction in foreign appetite for US Treasuries are likely to linger.
• In our base case, we continue to expect limited easing by the US Federal Reserve in 2025: one rate cut of 25 bps in December.

Why this matters

Market conditions remain choppy, and risk aversion is elevated. Given growing concern over a possible waning of foreign appetite for US Treasuries, the jump in yields in early April was a worrying sign.

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.