U.S. Treasury market

Warning

Recent days have seen some unprecedented market moves. Tuomas has followed the markets all through the week, issuing several warnings (see the Daily Thoughts). We warned of the risks of tariff wars on February 6 and the risk of a market crash and tariff disruptions on April 3. Just yesterday, Tuomas warned that

The problem, like I mentioned yesterday, is that nothing has essentially been fixed with the 90-day tariff pause, and bond investors are now nervous with the U.S. Treasuries in a way they were not before (for a very long time at least). A crack has appeared in the U.S. Treasury market.

Now, we issue a warning concerning the U.S. Treasury market and the financial system.