This week's case focuses on the direction of U.S. Treasury yield rates, which are moving higher due to rising energy prices and tariffs, yet lower due to a weaker U.S. labour market.

The interest rate on ten-year U.S. government bonds is struggling to find direction. This is due to the continued increase in U.S. government debt, the inflationary effects of tariffs imposed by President Trump, and the U.S.-Israeli military attack on Iran, which resulted in higher oil prices. Meanwhile, a softening U.S. labor market is hindering any significant interest rate hikes. However, concerns about credit are more closely linked to corporate bonds in the U.S. tech sector. Since the military attack on Iran began on Saturday, February 28, European stock markets, as well as the S&P 500 and Nasdaq, have taken a severe hit. Please find out more in our weekly letter on certificates Vontobel.com: Read the weekly newsletter here Link to the Swedish-translated version Read more

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As a globally operating financial expert with Swiss roots, Vontobel specializes in wealth management, active asset management and investment solutions. Structured Solutions & Treasury bundles different investment solutions for private investors either directly or via ecosystems. Read more

About Carlsquare

Carlsquare is a global research firm and financial advisor, focusing on M&A, EquityResearch and Growth Equity. Carlsquare has 150 employees with deep sector knowledge in all 11GICS sectors. The senior equity research team has extensive experience about the stockenvironment and several business sectors. The team produces company research reports,independent valuations and trading notes. The group have offices in Canada, Denmark, France, Germany, Poland, Sweden, United Kingdom and United States. Read more

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Carlsquare/Vontobel weekly trading note: US interest rates are in a tug-of-war