TechFlow news, QCP Asia released its market observations for April 9, stating, "After the U.S. imposed a new round of tariffs on China, markets continued their downward trend. The total tariffs on Chinese imports have now risen to an astonishing 104%.
Market volatility remains elevated, with the VIX index staying above 40 for the third consecutive trading session. Traditional safe-haven assets failed to perform as expected, as investors rushed to de-risk and cope with margin calls, leading to sell-offs in both gold and U.S. Treasuries.
The Trump administration’s strategy of refinancing U.S. debt at lower interest rates is under pressure, as yields across all maturities rise. The 10-year U.S. Treasury yield reached 4.50%, while the 30-year briefly broke above 5%. Credit spreads continue to widen, reflecting a broad deterioration in risk sentiment.
Rather than shifting course, Trump has doubled down, responding to each retaliatory move with even stronger countermeasures. Given that China holds most of the leverage, the key question becomes: how much more can the U.S. afford to spend in this game?
Markets are currently swinging between two hopes—that either the Trump administration or the Federal Reserve will step in to provide support. Yet both possibilities seem distant at present. With unemployment remaining stable and inflation showing signs of rebounding, the Fed is likely to maintain current interest rates for the foreseeable future. This stands in stark contrast to market expectations, which currently price in four rate cuts by 2025, including potential emergency rate cuts during ad hoc meetings.
Bitcoin is consolidating around the $75,000 level, though this level may prove difficult to hold if equities suffer another sharp downturn. Ethereum continues to underperform, falling back toward $1,400—a level last seen in early 2023. In this high-volatility environment, yield-generating strategies in crypto are regaining attention. Elevated implied volatility provides a favorable window for generating returns through structured trades."
