UBS expects the premium investors require over U.S. Treasuries rates to reach 160–170 bps for high-grade debt and 600–650 bps for junk debt by midyear.

Given the steep plunge in Tesla shares this year, the AFT president is urging money managers to “safeguard retirement assets” and urgently review their current holdings in electric carmaker Tesla, which is a target of political protests amid growing animosity for the brand.

The extra yield investors demand to own junk bonds instead of Treasuries widened by 45 bps yesterday, to 386 bps.

The actual formula used isn’t how the White House initially signaled the calculations would be done.

Among other measures, China imposed a 34% tariff on all imports to China from the U.S. and restricted export of rare earths to the U.S.

“When you look at the balance of the dual mandate right now, it is certainly much more challenging. I think the Fed is going to have to practice much more patience from here.”

Fed officials must decide this year whether to lower interest rates further to support the economy, or keep them elevated for longer to contain inflation. First they need to determine what proportion of inflation is tariff-related and whether that increase is temporary.

China will face a 34% rate, while the EU faces a 20% levy and Vietnam sees a 46% tariff.