Tariffs only partly explain April’s volatility – BIS paper
Movements in dollar and Treasury term spread driven by other factors, authors say
Attributing April’s market turmoil solely to tariffs does not provide an adequate explanation for the subsequent movements in Treasury yields and the value of the dollar, a Bank for International Settlements working paper has found.
The paper, published on August 7, attempts to identify how exactly tariff policies fed into price movements across various asset classes during the six weeks following US president Donald Trump’s initial ‘Liberation Day’ announcement on April 2.
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