As the US trade war with its allies intensified, the dollar fell to three-month lows on Wednesday. Meanwhile, a significant reform to German government borrowing led to the largest debt sell-off since the late 1990s.
Investors were particularly alarmed by the beginning of China’s annual sessions of its parliament, the National People’s Congress (NPC), where Beijing maintained its target of about 5% economic growth for 2025, in addition to the combination of tariffs and a dramatic change in German fiscal policy.
European markets rose as the euro reached its highest level in four months. As yields surged higher, longer-dated German government bonds suffered the most, suffering their worst one-day selloff in almost 25 years.
