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The dollar slipped towards its three-year low, and US government bonds were under pressure on Monday, combined with weak manufacturing data combined with growing warnings about the sustainability of the country’s debt pile to make investors uneasy.
The dollar fell 0.7% against its trading partner basket, nearing a three-year low following Trump’s “liberation day” tariff blitz in early March.
The Blue Tip S&P 500 index fell 0.3% due to morning trading after a purchase manager in the manufacturing division, after falling below the 50 level separating expansion and contraction at 48.5 in May.
And it was a weaker show than the previous month, with the latest indication that Donald Trump’s unpredictable trade war is placing emphasis on the world’s biggest economy.
“The decline in surprises indicates that tariffs continue to be significantly heavily in the sector,” an analyst at Capital Economics said.
The yield on US government bonds in 2030 rose 0.03 percentage points to 4.96% as the debt prices fell as the debt prices fell.
JPMorgan Chase CEO Jamie Dimon warned Friday that the U.S. bond market could “split” under the weight of rising debt loads in Washington.
