During the trade war, the 10-year US bond rate fell to its lowest level in 20 months

Prices, however, slowed their growth after a $ 32 billion auction of seven-year Treasuries Hot demand and the stock markets have reduced their losses.

The Chinese Communist Party's newspaper warned the United States on Wednesday that The country is ready to retaliate in its trade war with rare earths, which are widely used in electronics and military equipment.

The warning became known after the president Donald Trumpsaid Monday that Washington was not yet ready to reach an agreement, while putting pressure on the Japanese prime minister, Shinzo Abe, in order to reduce the trade imbalance between Japan and the United States.

Treasury bond prices rebounded in line with German government bonds. doubts about the Italian budget and relations with the European Union. Germany's 10-year public debt yield fell to its lowest level in almost three years.

The European Commission on Wednesday urged the Italian government to explain the deterioration of the country's public finances, a measure that prepares the environment for a possible legal confrontation with the skeptical ruling coalition against the euro in Rome.

The return of the reference paper to 10 years has reached 2.21%, its minimum since September 2017, before bouncing back to 2.24%. Yields fell 2.61% on April 17th and 2.77% on March 4th.

The yield curve between 3-month bonds and 10-year bonds was reversed up to 14 basis points. The move is considered a precursor to a recession.

Wall Street reaches its minimum in 4 months

In the midst of this scenario, the New York Stock Exchange is weakened by growing worries about the global economy as the trade dispute between China and the United States intensifies.

The Dow Jones Industrial Index He lost 0.87% to 25,126.41 points, its lowest level in four months. The Nasdaq, technology stocks, lost 0.79% to 7,547.31 points and the S & P 500 lost 0.69% to 2,783.02.

"The potential consequences of the trade war with China, which is currently intensifying, are not yet measurable, and investors have concluded that it is better to withdraw their money now (from the stock market) and to look for less exposed sectors. "said Sam Stovall of CFRA.

"Once the turmoil is over, investors will come back" to the shares, he predicts.

Gregori Volokhine of Meeschaert Financial Services indicated that signs of a slowdown in US growth are increasing and many fear that the trade war with China will ultimately have a decisive influence on the heads of the enterprise.