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.