Daily Flows

• U.S. equities dropped sharply overnight while bonds rallied, with prices up and yields down.
• One-year swaps have fallen 19 basis points over the past couple of days, pushing 12-month term deposit rates  towards the 4.50% mark.
• NCD margins remain steady at +40, with no noticeable spike in liquidity demand of late.

Markets Adjust Swiftly to Tariff Announcements

• Markets continue to react to Trump’s surprise tariff announcement, with the scope and scale of the measures exceeding expectations.
• Equities experienced a historic sell-off of 4–6%, while bonds rallied strongly, with yields falling 5–15 basis points across the 1–5 year part of the curve as investors sought safe-haven assets.
• Every country was hit with a minimum 10% tariff on all imports, alongside additional country-specific levies.
• The full impact is still unfolding, with countries like Canada already announcing retaliatory tariffs.
• Domestically, credit spreads are widening while demand for risk-free assets continues to rise.