President Trump Announces Qatari Investment Pact

Optimism from trade deals pushes rates higher. Today’s newly announced U.S. investment deal with Qatar fueled risk-on sentiment after deals with China, the UK, and Saudi Arabia had already spurred optimism. Yields climbed 1-7 bps with demand for riskier assets rising, pushing 2-year and 10-year yields to 4.05% and 4.54%, respectively. Both are at their highest levels since February and are 45-50 bps above YTD lows. Meanwhile, tech stocks rose today following the new deal announcement, with the NASDAQ up 0.72% to 19,146, also a high since February.

Fed’s Jefferson voices stagflation concerns. Fed Vice Chair Philip Jefferson said today that tariffs could result in slower economic growth and increased price pressures this year, though he still expects the economy to expand. The comments largely echoed Chair Powell following last week’s FOMC decision, where Powell hinted at “a rise in inflation, a slowdown in economic growth and an increase in unemployment.” Though Jefferson is concerned about stagflation, he believes the Fed is “well positioned to respond in a timely way to potential economic developments.” That tone is consistent with other Fed officials and Powell, who have argued that the central bank should remain patient while they monitor economic strength and policy changes.

President Trump secures Qatari investment deal. Today, the White House announced that the U.S. and Qatar have jointly announced a ~$243 billion investment agreement, including a large commitment by Qatar Air to purchase Boeing jets, which the White House says could develop into a partnership worth ~$1+ trillion over its lifespan. The announcement comes a day after the President announced a large partnership with Saudi Arabia as part of a Middle East tour aimed at strengthening U.S. partnerships with the Gulf states. Together, the President has secured ~$850 billion of initial investments during his trip, and his final stop in the region is to the UAE, which boasts a ~$1+ trillion AUM sovereign wealth fund.