JAPAN: Kyodo-Draft Defence White Paper: Sino-Russian Links A 'Grave Concern'

• Treasury futures pared down move briefly after China tariff response with 84% duty on US imports, up from 34%.
• June'25 10Y futures tapped 111-00.5 currently trades 110-20.5 (-26.5), 10Y yield 4.3898 +.0969. Curves bear steepen to new multi-year highs overnight: 2s10s currently +6.369 at 62.482 after tapping 73.84 during Asia hours.
• Stocks come back under pressure: SPX eminis -81.75 at 4938.25.

China's MoF formally hike tariffs on US goods, raising tariffs on US goods to 84%, and adding more US firms to China's unreliable list, and the export control list. 

Equities slip on that China tariff raise - we knew Chinese leadership were set to meet to discuss capital markets, but it wasn't necessarily expected it would result in a tariff raise to 84% on US goods.

• USD/CNH rallies, while equity weakness presses the e-mini S&P back through 5,000. The impact on US 10y yield more contained - back to 4.386% at typing.

• MNI: US MBA: MARKET COMPOSITE +20.0% SA THRU APR 04 WK