Insightz

The recent surge in U.S. Treasury volatility, combined with foreign investors pulling back and yields climbing sharply, is raising serious questions about Treasuries’ long-held status as a “risk-free asset.” With inflation pressures lingering and policy uncertainty mounting, the market is being forced to reassess the true risk profile of government bonds. For investors, this environment underscores the need to re-evaluate asset allocation strategies to navigate shifting conditions.

U.S. stocks extended their winning streak to six consecutive days, buoyed by positive developments including progress on a U.S.-India trade deal, easing bond yields, and solid corporate earnings—all of which helped restore investor confidence. Meanwhile, Hong Kong stocks faced resistance at higher levels, as pre-holiday trading turned more cautious. In the short term, technical resistance continues to cap gains. Investors are advised to focus on sectors tied to tech hardware and domestic demand recovery.

On April 29, 2025, the Australian dollar edged slightly lower against the U.S. dollar but remained near its highest level of the year. Investors are closely watching Australia’s upcoming Q1 CPI report — if inflation cools more than expected, it could increase the likelihood of a rate cut by the Reserve Bank of Australia in May. Ongoing trade tensions between China and the United States also add uncertainty, potentially weighing on Australia’s export-driven economy. With inflation data and central bank policy in focus, traders should stay alert to both opportunities and risks in the Aussie dollar’s outlook.

When Donald Trump returned to office in 2025 and launched his so-called “economic revolution,” the financial markets reacted with immediate turmoil. Sweeping tariffs triggered a sharp stock market crash, a mass sell-off in the bond market, and a weakening U.S. dollar. Investor confidence plunged, signaling the onset of a potential economic downturn. As the first hundred days unfolded, American markets—and global capital—responded with clear signs of anxiety. Now, whether the U.S. economy can weather this seismic shift has become a critical question for investors around the world.

This week, all eyes are on key U.S. economic data—including first quarter GDP, the core PCE inflation index, and the non-farm payrolls report—as investors gauge signs of slowing growth and shifting expectations around potential interest rate cuts. Meanwhile, market participants are also closely monitoring the Bank of Japan’s policy moves and the yen’s performance, both of which could influence global capital flows.

With monetary policy and inflation concerns still weighing heavily on sentiment, investors are leaning toward a more cautious stance. Defensive stocks, gold, and government bonds are now the top choices for those seeking safe-haven assets. As economic uncertainty grows, asset allocation strategies may require thoughtful adjustments to navigate the evolving landscape.

With Trump returning to the White House, the Federal Reserve’s independence faces an unprecedented challenge. The depreciation of the U.S. dollar and the volatility in U.S. Treasury bonds have become focal points for the market. Under mounting pressure from political interference, global capital is accelerating de-dollarization, shifting toward gold, TIPS, and non-dollar assets for safety. This in-depth analysis reveals how this policy storm could reshape the global financial landscape, highlighting key trends and strategic recommendations every investor should know.