A Surprise Rates Pause by the RBA Catches Global Bond Markets by Surprise

Unexpected hold by the RBA rattles global bond markets

Highlights

• Unexpected hold by the RBA rattles global bond markets

• Investors have turned numb to tariff threats

• Risk-on sentiment dominates equity markets once again

• The U.S. housing market is in a whole lot of trouble

Key Takeaways

• Trade Threats Wear Thin: President Trump has resumed his reciprocal tariff threats, which undermined the risk-on trade yesterday. But so far today, it seems as though investors have turned their attention to the new target date of August 1^st as opposed to July 9^th. More threats, more reprieves, and investors seem to have become immune to this prolonged era of elevated trade uncertainty.