During the past week, President Trump has been urging calm, and with good reasons. Far from chaos, the financial reaction to its tariff announcement has revealed something much deeper: the world still wants to do business with the United States, and Trump is calling the shooting.
“I know what the hell I am doing,” the president told the Republicans on Tuesday, moving away the media and elite panic. “It’s great!” He published in Truth Social the next morning. “Everything will work well.”
At 9:37 AM on Wednesday, Trump doubled, publishing: “This is a good time to buy!”
He was right.
The market rebound came quickly. The entire announcement of President Trump that some of the rates would stop for 90 days received all the attention, the real fireworks began several minutes before, when the United States Treasury hero is auctioned in a 10 -year bond auction. Instead of panic or retirement, the auction showed a demand too much for indirect buyers, including foreign central banks, aligned to buy the debt of the United States government.
In other words, far from turning against the United States, the world was registering to support it.
Behind the scene, that result was not accidental. Trump administration officials had previous days, insurance in silence the international partners that Trump’s commercial strategy was not staggered in chaos, but a coordinated plan to finish decades of economic exploitation by foreign powers, especially China. The Secretary of the Treasury, Scott Besent, Vice President JD Vance and other members of the Trump economic team had been urging a structured approach that would isolate China while pointing to the global markets and allies that the administration’s strategy was deliberate and focused.
“Virtualy every country moves to negotiate,” Trump said Monday. The auction on Wednesday showed it. Buyers continue to flee from America. They were buying in it.
Later that day, Trump announced a 90 -day break for most countries while raising tariffs on China to 125 percent. It was not an investment: it was a sign that allies can work with the United States and the adversaries would pay.
At the beginning of the week, many on Wall Street believed that the central banks were throwing treasure bonds, which caused the yields to unexpectedly increase despite the growing fears of a recession and a lunch stock market. The volatility of the actions and the recession conerns would normally trigger a “flight to security” (investors buying bonds), Tat would increase bond prices and force bond yields. But with the United States imposing tariffs, maybe this time it would be different, with global investors rejecting US bonds as a kind of protest against new tariffs, many speculated on Wall Street.
This created a lot of tension around the treasure auction or 10 -year -old bonds on Wednesday. Some analysts warned that the auction could not attract buyers, resulting in a disorderly increase in yields. “Today’s treasure auction could make or break the bond market,” warned a head of Barron. There was talk that the Fed could have to intervene with an emergency installation to buy bonds to restore the market order.
On the other hand, the auction delivered a resounding vote of confidence and support, which increased the narration that foreign buyers were on strike against the debt of the United States government.
The bonds were sold with a yield of 4,435 percent, especially below the level of 4,465 percent observed just before the auction was the. That “stop” result, as it is known on Wall Street, said a strong demand: the treasure had no problem selling the bonds without having to offer investors a premium above market rates.
One of the clearest signs of strength came from indirect buyers, a category that generally includes foreign central banks and global financial institutions, which obtained 87.9 percent of the offer, well above the average of around 70 percent.
If foreign investors were cutting their treasure holdings earlier, the results of the very solid auction suggest that global institutions had reversed the course and were now eager to maintain the debt of the United States.
Far from a trade of “selling America”, the bond market only pointed out a vote of confidence in Trump’s leadership and the strength of US markets.
A senior bond merchant on Wall Street told Breitbart News that Besent played a key role in this pivot. His conversations with foreign leaders, as special in Asia and Europe, probably assured investors that the United States debt is in constant hands, and that the current commercial realine is not a tantrum but a strategy. More importantly, foreign investors, special governments and central banks, seem to see the purchase of treasure bonds as a way of pointing out their willingness to cooperation with the efforts of the United States to remodel global trade.
“Moving away from the auction would have seemed a form of retaliation against tariffs,” said the bond merchant, who spoke on condition of anonymity because his employer does not authorize him to speak with journalists. “Instead of retaliation, they bought.”
Some media said that market volatility forced Trump to falsify. But the bond auction tells a very different story, or a constant demand, fall in yields and growing confidence in the global leadership of the United States. And he pointed out that many of the countries that face Trump’s reciprocal rates wanted to reduce offers instead of participating in a commercial war.
Trump’s decision to take advantage of Berry to lead tariff negotiations probably played a key role. As the man in charge of administering the United States debt, he has used both public tranquility and private diplomacy to stabilize the situation, even improve it.
At a press conference on Wednesday afternoon, Besent ruled out the idea that the bond market forced the hand of the White House. On the other hand, he hinted that the participation of global investors in Wednesday’s auction was a crucial step towards pauses in tariffs for non -retaliating countries.
“Real we had a good 10 -year -old auction today,” he said, with a slight smile.
“Many of you in the media clearly lost the ‘art of the agreement’, clearly did not see what President Trump is doing here,” said White House, Karoline Leavitt. “You tried to say that the rest of the world is approaching China, when, in fact, we have seen the opposite effect. The entire world is calling the United States of America, not in China, because they need our markets, they need to consume tumors and issues, that is exactly why more than 75 countries have called.”
On Wednesday, the world did not spread from the Trump plan to reorient the global commercial system: it aligned to invest in the United States Treasury bonds.
