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The latest interest rate hike caught the attention of bond guru Jeff Gundlach. The founder of DoubleLine Capital said Tuesday in a tweet that he paid attention to technical levels over the last 10 years and that the 30-year yield, sign that this rate hike is not yet a fake.
"Returns: In March, 10% more than 3%, this time without concern of the financial media," he wrote. "Look at 3.25% on the 30s. Two closures above = change the game."
Investors continue to monitor trade differences between the United States and China. On Monday, Washington announced that it would impose a 10% tariff on Chinese imports worth $ 200 billion, which would reach 25% by the end of the year.
The news triggered Tuesday retaliation by Beijing, who announced levies for more than 5,000 US products – worth $ 60 billion – which will come into effect next week on September 24, according to Reuters.
China's Ministry of Commerce said on Tuesday that it has lodged a complaint with the World Trade Organization about the United States. last series of tariffs. At a World Economic Forum conference in Tianjin, Chinese Premier Li Keqiang said the Asian nation was facing "a series of difficulties and challenges" to ensure the stability of the economy.
While some traders have described tariffs and trade concerns as inflationary and as high-rate culprits, others have referred to the Federal Reserve.
"The explanations we have heard rely largely on the idea that growth, a bellicose Fed, risky assets and supply have created a downward trend underlying movements like those of Tuesday" said Ian Lyngen of BMO Capital. "For us, the move does not change our medium-term reversal call and, if so, offers a more attractive investment for resetting the flatbed."
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