A historic week has passed, Bitcoin and the US stock market have both rebounded, but the market has fundamentally changed...

UBS believes that once the global risk-free rate fluctuates, it means that all markets will be disrupted. This article is from Wall Street Insight and was compiled, compiled and contributed by Foresight News. (Synopsis: Trump tariffs make U.S. debt "risk aversion myth busted" lazy bag: Wall Street recognizes "risky assets", China and Japan are dumping murderers? (Background supplement: US CPI "unexpected decline" in March Fed interest rate cut probability increased, but why did bitcoin and US stocks not rise but fall?) U.S. equity volatility rarely surpasses emerging markets and bitcoin, while U.S. Treasuries, once considered a safe asset, are volatile, making investors question the wisdom of holding U.S. assets. UBS believes that once the global risk-free rate fluctuates, it means that all markets will be disrupted. Analyst Ed Al-Hussainy hit the nail on the head: "I'm not actually worried about a recession, I'm worried about a financial crisis." U.S. stocks returned to the rally on Friday, and it seemed that the market's risk appetite mood had returned, but in fact investors have begun to question the safety of U.S. assets, especially the sharp volatility of U.S. Treasuries, which has once again gripped Wall Street with fear of a financial crisis. Over the past week, the yield on the 10-year Treasury note posted its biggest weekly jump in more than 20 years, while U.S. stocks plunged and then skyrocketed. On the surface, with the S&P 500 up more than 5% for the week, US Treasury yields back to February levels, and bitcoin closing higher, it seems like business as usual. Disturbingly, however, this week's simultaneous decline in U.S. stocks, U.S. Treasuries, and the U.S. dollar is typical of emerging markets, not the performance of the world's safest assets. With so much volatility in U.S. long bonds this week, a liquidity crisis seems looming, making investors question the wisdom of holding U.S. assets. Banu Baweja, chief strategist at UBS, said: "It's terrible. We are redefining the global risk-free rate, and if the global risk-free rate fluctuates, it will disrupt all markets. Historically, U.S. assets are more volatile than emerging markets and bitcoin Trump's recent tariffs have not only damaged confidence in the U.S. economy, but also shaken investors' trust in U.S. policy direction and dollar assets. Even by Wall Street's long historical standards, this week has been a tragic trading week, U.S. stocks seem to be on a roller coaster, and the trend of the U.S. dollar suggests that the safe-haven status of the United States seems to be insecure: On Monday, due to the so-called oolong tariff message, U.S. stocks staged a 15-minute pulse shock, the Nasdaq once fell 10% low, and U.S. bonds plunged. On Tuesday, the news that there would be no tariff exemption dashed hopes for a rebound in U.S. stocks, with the Dow soaring more than 2,000 points at intraday highs, the S&P erasing more than 4% gains, and the U.S. Treasury market deleveraging plunge. On Wednesday, the United States suspended some tariffs, the three major U.S. stock indexes closed up at least 8%, the S&P posted its biggest gain since 2008, and U.S. stock trading volume hit an all-time high of 30 billion shares. Ten-year U.S. Treasury yields retreated sharply. On Thursday, global investors fled U.S. assets, U.S. stocks and bonds were killed three times, the Nasdaq fell more than 4%, the dollar fell its biggest daily decline in two years, and gold reached a new high. On Friday, the US Federal Reserve hinted or intervened, and U.S. stocks rebounded to close higher, but the decline in the US dollar warned that the status of the US safe haven seems to be insecure. Andrea DiCenso, investment manager at Loomis, Sayles & Company, said: "Is the U.S. market starting to behave like an emerging market? Without a doubt, yes, that's exactly what we're seeing." According to the data, the volatility of US stock ETFs even exceeded that of funds tracking emerging markets, and at one point was higher than that of Bitcoin. This has almost never happened except during the pandemic, last August's crisis and the aggressive rate hike by the US Federal Reserve. Neil Dutta of Renaissance Capital bluntly stated in an email to clients: "The S&P 500 is trading like a cryptocurrency, which may not be a good thing." Risk-free interest rates fluctuate wildly, foreshadowing a repeat of the financial crisis When long-term bond markets are volatile, spread wide, and illiquid, they affect all other capital markets, especially upward pressure on interest rates and U.S. government debt, and may even turn into a financial crisis in the long run. U.S. Treasury volatility jumped this week, with the volatility of the 20-year U.S. Treasury quickly catching up with the volatility of VIX U.S. stocks. While this week's 30-year U.S. Treasury decline did not extend last week's broadening trend across the board, there were some cracks in the bid-ask spread on the benchmark 30-year bond – a signal of a long-term decline in liquidity in the U.S. Treasury yield curve. Spreads have reached almost a full basis point this week, a level not seen since the beginning of 2023. Outside the U.S., confidence in the quality of U.S. equities, fixed income and monetary assets has been eroded. Nathan Thooft said, "The question is, is this a temporary shock or a long-term shift? We still believe in the former. But that doesn't deny that some large asset owners are looking for alternatives and diversification to safe-haven assets." Analyst Ed Al-Hussainy hit the nail on the head: I'm not worried about a recession, I'm worried about a financial crisis. Money flocked to safe-haven assets, Wall Street called on the US Federal Reserve to intervene The gloom of the financial crisis has allowed global investors to withdraw from the United States and pour into safe-haven assets such as European bond markets, gold, the yen and the Swiss franc to avoid broader turmoil. German bond yields have been largely unchanged this week, while U.S. 10-year bond yields have surged more than 50 basis points, the largest lag behind German Treasuries since 1989. In contrast, the dollar index fell below the 100 psychological mark, posting its worst two-week decline since November 2022, while the euro appreciated sharply against the dollar, appreciating more than the yen this week. Extreme volatility has put unprecedented psychological pressure on investors and traders, and there have been calls on Wall Street for the US Federal Reserve to intervene. On Friday, JPMorgan CEO Dimon said he expected "chaos" in the U.S. Treasury market. "When you have a lot of volatile markets, Treasuries trading spreads are very wide, liquidity is low, it affects all the other capital markets," Dimon said on the earnings call, "and that's why the Fed should intervene, not to help the banks." Thankfully, Fed Voting Commissioner Susan Collins said Friday that the Fed is "absolutely ready" to help stabilize financial markets if market conditions become chaotic. But she also stressed that the market continues to perform well and we don't see overall liquidity concerns. Related reports Apple breathes a sigh of relief! Trump announced: mobile phones, computers and other electronic products are exempted from tariffs, iPhone does not rise? U.S. debt blood collapse! Yields soared to a new 3-year high, and the United States despaired that "stocks and bonds fell three times" After the US stock market plummeted, the Federal Reserve will bail out the market? Analyst: Don't count on it in the short term "After a historic week, Bitcoin and US stocks have rebounded, but the market has completely changed..." This article was first published in BlockTempo's "Dynamic Trend - The Most Influential Blockchain News Media".