Mr Trump’s ultimate desire is not in doubt. The Fed has cut rates by only a percentage point since September, to 4.25-4.5%. Mr Trump, like most businessmen, dislikes tight money, and covets the lower rates in Europe and elsewhere.

But President Donald Trump’s new declaration that he has “no intention” of firing Federal Reserve Chair Jerome Powell should — in theory, anyway — be very good news for bonds. It potentially lifts a huge cloud of uncertainty that has been depressing bond prices for weeks.

The U.S. dollar rose sharply and then steadied on Wednesday as President Donald Trump backed away from threats of firing Federal Reserve Chair Jerome Powell in a relief to investors, while optimism around trade deals lifted beaten-down sentiment.