Japanese banks tank in Trump tariff rout as market slide deepens

Japanese banks tanked on Friday and stocks globally extended a punishing selloff in the wake of US president Donald Trump’s sweeping tariffs, helping drive a rally in US Treasuries and supporting gold near a record peak.

Benchmark 10-year US Treasury yields slid under 4 per cent and traders priced in more than 100 basis points of Federal Reserve rate cuts this year after Washington’s steepest trade barriers in more than 100 years stoked fears of a global recession.

A rush into Japanese government bonds (JGBs) caused yields there to plunge to what could be their biggest weekly drop in three decades, as worries about recession turned to a manic bid for safety.

“If the current slate of tariffs holds, a Q2 or Q3 recession is very possible, as is a bear market,” said David Bahnsen, chief investment officer at The Bahnsen Group...
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