QCP： Trump's comments triggered market panic, and lower treasury bond bond yield provided breathing space for the US government

BlockBeats News: On March 11th, QCP released a daily market observation stating that the optimistic sentiment after Trump's victory quickly reversed, and the US stock market continued to fall into a downward spiral. The bearish sentiment in the market has fully erupted, with the trading volume of put options on US stocks soaring to the highest level since 2020. The latest catalyst is Trump's remarks in an interview with Fox News over the weekend. He showed indifference towards the risk of economic recession during the interview. Despite being known as the 'stock market president', he stated that an economic recession may be necessary to 'repair' the United States. Bitcoin has once again become a release valve for market pressure, despite market turbulence, not all signals are bearish. This wave of risk aversion has lowered the yield of 10-year US treasury bond bonds by about 60 basis points, while weakening the strength of the US dollar - which has historically been good for risky assets denominated in US dollars (such as US stocks and cryptocurrencies). The lower yield also provides the US government with breathing space and reduces the cost of refinancing its massive debt. Trump's economic policies may become crucial. In Trump's policy blueprint, particularly his proposed tax cuts and more expansionary fiscal policies, are gradually taking shape. Reducing borrowing costs at this time may support the future rebound of the US economy and market.