Taco trades or fake news fatigue

- By Rebekah Tunstead
- 28 Jul 2025

Fool me once, shame on you. Fool me twice, shame on me. It’s a maxim on many traders’ minds as they try to gauge the authenticity – or otherwise – of US president Donald Trump’s pronouncements.

When news broke on July 16 that Trump had drafted a letter to remove Federal Reserve chair Jerome Powell, the market hadn’t yet fully learned its lesson.

The initial shock value of noisy headlines prompted rapid curve steepening and twos/10s – a bet on a fall in short-term Treasury yields against rising

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