The bond market chills while the dollar swoons
Why it matters: After a "tariff tantrum" sell-off, bonds are cool to buy again, making it look like the pushback on American policy has moved to the dollar.
Zoom out: Stocks and bonds are both getting bought by investors right now, which is atypical. Stocks are usually higher risk, and bonds are safe.
If both are getting bought while the dollar is down, the greenback may be taking the brunt of the investor rebellion against U.S. assets.
By the numbers: The U.S. dollar is down over 10% year to date.
Conversely, U.S. government bonds had their best first half in five years to kick off 2025, while stocks hit their fifth record high for 2025 on Monday.
What they're saying: It's not that bond investors have nothing to worry about.
"The volatility has died down a little bit, compared to where it was, but other than that, it's more just a calm between the storms," according to Kathy Jones, chief fixed income strategist at Charles Schwab.
Reality check: There are some, particularly in the Trump administration, who are fine with a weaker dollar.
What we're watching: The "big, beautiful bill" would increase the deficit. Typically that would push up bond yields on the longer end of the curve.
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