Global shares rallied, while gold and safe-haven currencies slumped against a resurgent dollar on Monday as the U.S. and China agreed to temporarily slash harsh reciprocal tariffs and cooperate to avoid rupturing the global economy.
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00:00Wall Street's three major indexes rallied sharply on Monday, May 12, with the S&P 500 hitting its highest level since early March,
00:08as the U.S.-China agreement to temporarily slash tariffs brought some hopes for the easing of a global trade war, which U.S. President Donald Trump ignited in early April.
00:20The U.S. and China announced on Monday that they would slash steep tariffs on each other for 90 days.
00:26U.S. said it will cut tariffs imposed on Chinese imports to 30 percent from 145 percent, while China said it would cut duties on U.S. imports to 10 percent from 125 percent.
00:40While stocks went up dramatically today, the bond yields also rose dramatically, which means their prices came down.
00:47We're looking at the 10-year flirting with 4.5 percent, which was a rate that the Trump administration tried very hard to move the 10-year off of
00:54to reduce the price of mortgages for the average consumer.
00:57The two-year is up about 12 basis points today, which is really a sign of we're worried about more impending inflation.
01:04And even the super short end of the curve, where you see money markets play, has moved pretty dramatically.