The gains in bonds and haven currencies come in what’s likely to be a choppy week for markets with the Federal Reserve setting monetary policy on Wednesday and tariff talks remaining in focus. Investors are also digesting the weekend tussle between President Donald Trump and Colombia, with the latter swiftly agreeing to the return of migrants to avoid hefty levies.
“The incident again shows that tariffs are a negotiating tool, but markets need to price in some premium for the volatility that such announcements will bring,” said Mohit Kumar, chief economist and strategist for Europe at Jefferies International.
European bonds followed US Treasuries higher, sending the German 10-year yield lower by seven basis points to 2.50%. Debt from Italy to France and the UK also gained.
The dollar advanced versus all Group-of-10 peers except the yen and the Swiss franc, which attracted haven flows. The Japanese currency gained 0.8% to 154.71…
