Weekly Market Summary: Bond Rally Spooks Stocks in Short Week

U.S. markets were closed on Monday for the Memorial Day holiday, but the selling pressure on stocks did not take a break this week. There was little progress in trade talks between the U.S. and China. In fact, President Trump declared trade war in a new theater on Thursday, proposing a 5% tariff on all goods imported from Mexico, beginning June 10. This continued global economic uncertainty sent investors looking for safety in bonds. Short-term rates moved so low on Wednesday that the yield on 3-month bills T-bills was 14 basis points below 10-year notes, which is a level of inversion that hasn’t been seen since the Financial Crisis.… Read more