Tariffied? Recent swings in corporate investment strategy

Recent Treasury and futures market dynamics reflect notable shifts in investor sentiment, triggered by changes in U.S. trade policy and attendant macro uncertainty. Entering 2025, market expectations were anchored in continued economic resilience and easing—but still tight—monetary policy. Over the last three months, rising trade tensions have shifted the outlook for monetary policy to a more neutral, even dovish, stance by year’s end.

Corporate investors have taken note.

1. This year, investment flows from Clearwater’s proprietary database point to a tactical shift out of money market funds. Cash is no longer king.
   
2. Following the market sell-off on “Liberation Day” (April 2), Clearwater data showed an unprecedented surge in demand for Treasury securities with longer time-to-maturity on April 9, when yields rebounded. Corporate investors appear keen to lock in yield across longer time horizons when faced with whipsawing rates. When T-bonds sell off, corporates jump in.

Read our report for more data insights incorporating Clearwater’s proprietary data, covering over $1 trillion in corporate assets.