Investors sell bonds as trade deals boost stock markets
Political, fiscal risks in Japan weigh on US bond prices
Treasury 20-year auction meets solid demand
NEW YORK, – U.S. Treasury prices declined on Wednesday as a U.S. trade deal with Japan and a potential deal with the European Union triggered a risk-on move across global equity markets, prompting investors to sell safer bonds to buy stocks.
U.S. President Donald Trump said late on Tuesday the trade deal with Tokyo would include a lower-than-threatened 15% tariff on shipments to the U.S. in return for $550 billion of Japanese investments and loans in the United States.
Meanwhile, the European Union and the U.S. were heading for a
that includes a 15% U.S. baseline tariff on EU goods and possible exemptions, two European diplomats said on Wednesday.
The Japan trade deal, which followed similar agreements with the Philippines and Indonesia, boosted Japan’s Nikkei, with…
