A strong market for US Treasuries is in everyone’s interest, said Bundesbank President Joachim Nagel. “We need a good US Treasuries market,” he told Bloomberg Television today, even as some investors have turned to German bunds instead.
Treasuries sold off this month as threats of steep US tariffs escalated, and as President Donald Trump attacked Fed Chair Jerome Powell for not cutting rates fast enough. Trump appeared to moderate his stance on both issues today, and stock markets in Europe and the US rallied. Treasury Secretary Scott Bessent poured cold water on hopes that Trump is offering to take down US tariffs on China on a unilateral basis.