Capital Alert: March 22, 2018

Focus Shifts from Fed to Foreign Affairs

Treasuries have rallied as investors shifted focus from the Federal Reserve and its commitment to increasing interest rates to the threat of a trade war with China that has the potential to slow global growth. The threat of an escalating trade spat sent investors scurrying to safe-haven assets and caused the 10-year Treasury yield to fall back toward 2.8%. Investors are on edge a day after the Fed sought to reassure markets that it’s in no hurry to raise rates even as it announced stronger growth projections for the world’s largest economy.