Market Rundown: Treasury Yields Ease, Dollar Weakens, BYD Surpasses Tesla in China EV Sales

Treasury Yields and US Debt

• 📉 US Treasury yields eased back after a recent sell-off, with investors returning at more attractive levels.
• ⚠️ The yield on the 5-year Treasury note remains above 5%, and the 30-year Treasury note had hit a 19-month high.
• 💸 The House of Representatives passed President Trump's tax and spending bill, which is expected to add trillions of dollars to US debt.

Global Market Performance

• 🌏 Asian stocks gained overnight, and European stocks are heading for their sixth consecutive week of gains.
• 📈 Bitcoin is holding near a record high level.

US Dollar and Currency Trends

• 💲 The US dollar is weaker this Friday, heading for its first weekly loss in five weeks against the euro.
• 🇪🇺 The euro is up 9% against the dollar in 2025, making it a clear winner as investors seek safer bets.
• 🇨🇭 The Swiss franc and yen are also up this year against the dollar.

Electric Vehicle Market Dynamics

• 🚗 For the first time in April, BYD sold more pure electric cars than Tesla in China.
• 📉 Tesla sales are falling in China, partly due to backlash from Elon Musk's political interventions.
• 📊 Renault, Skoda, Audi, BMW, and VW also sold more pure electric cars than Tesla in the region in April.

German Economy and Trade Relations

• 🇩🇪 The German economy grew by 0.4% in the first quarter of 2025, driven by exports and industry frontloading ahead of US tariffs.
• 🗣️ President Trump is pushing the EU to cut tariffs, threatening an additional 20% duties if they do not comply.
• 🤝 Little progress has been made in talks between the EU and the US since the announcement of a 90-day negotiation period.