The 10y US bonds +1.87% last day, as well as 30y bonds +1.53%. They just bumped back to where they were as they forced trump to slam the emergency brakes on tariffs. Inflation pressure is driving them up, as anyone with two brain cells can understand.

When every little china-produced gadget more than doubles its price due to the us' suicidal world-tariff-war - they will - inflation goes up.

Now, there's a shitload of bonds that the US needs to refinance every year. The cost for the US to maintain its national debt will skyrocket.

A finance buddy once told me that seeing bond traders panic is like being a toddler and see your parents cry. You don't understand what's going on, but you know it's really really bad.

The US already has a 124% debt-to-gdp ratio. This will hurt. Being in a 30ish % country is a little bit better, I can tell you.

Everybody told you, by the way. Still, the orange jesus started a financial world war.

quote:

Originally posted by HerrBerg:
A finance buddy once told me that seeing bond traders panic is like being a toddler and see your parents cry. You don't understand what's going on, but you know it's really really bad.

That quote pretty well sums it up. When 10Y treasury yields hit 4.5% the adults in the room told Trump, you better stop playing with yourself and wake up. Normally when equity markets crash, money moves to bonds. Not this time. Trump has succeeded it spooking the bond markets too. With limited demand for the bonds, bond yields have to go up. Of course, this is all a little esoteric for a MAGAt reading comic books. They just know that Trump likes to beat up on foreigners, queers and transgender people, talks mean about NATO, and wants to take over Panama, Greenland and Canada, so life is good . . . until it ain't.

https://youtu.be/_bZheBor7gE?si=BXxK4rQsIB2_5exF

A Psychiatrist Explains What Scared Trump & Likely Led Him To Back Down Over Tariffs

https://youtu.be/eOdU1aEdbhg?si=3jekJShxiQHQRiIB

James Carville: Inside Trump's Pump & Dump Scheme

quote:

Originally posted by MJines:
That quote pretty well sums it up. When 10Y treasury yields hit 4.5% the adults in the room told Trump, you better stop playing with yourself and wake up. Normally when equity markets crash, money moves to bonds. Not this time. Trump has succeeded it spooking the bond markets too. With limited demand for the bonds, bond yields have to go up. Of course, this is all a little esoteric for a MAGAt reading comic books. They just know that Trump likes to beat up on foreigners, queers and transgender people, talks mean about NATO, and wants to take over Panama, Greenland and Canada, so life is good . . . until it ain't.

Well, emperor Nero only burned his capital city to the ground. Trump will go much, much further in destroying america. The last day's talks about some of the national debt being fraudulent... the potus is testing the waters. Maybe the US could unilaterally scratch its national debt? Like that junkie cousin who wants to borrow a grand without a thought of paying back?

If you owe $100 and you can't pay it, you have a problem.

If you owe $100,000 and you can't pay it, the bank has a problem.

If you have to roll over a wheelbarrow of two percent bonds in a six percent environment...

Neither a borrower nor a lender, be.

(wisdom mooched from Hamlet)

quote:

Well, emperor Nero only burned his capital city to the ground.

Now we have Emperor Felonius Maximus ruling the Asylum of Chaos - and the one thing he and his cronies have learned is that they can get very rich if they alone control the chaos.

Watch for another market roller coaster in a month or so.

One of the worst weeks for bonds in decades. The most attention-grabbing statistic was with the 30-year bond yield. The yield saw its largest one-week increase of any point since 1982, finishing the week at 4.87 percent after having peaked just above 5 percent earlier Friday. So the sell off continued on Friday, after the tariff suspension was announced . . . apparently the sell off continued after the announcement because the financial markets have gotten to the point that they simply do not believe a word Trump says and feel he has no clear and rational fiscal policy. Some are speculating that the global markets are reassessing the structural attractiveness of the dollar as the world's global reserve currency and a "de-dollarization" may occur. The US dollar index hit its lowest level in 3 years last week. Liberation Day . . . the world liberating itself financially from the Trump-driven economic chaos in the US.

just the beginning and not enough for the trumps followers of the cult of the supreme leader to be worried yet ...

So, Trump believes in God's intervention, or so he says.

https://www.msn.com/en-us/news...3ca0a73e4cbbd3&ei=87

Fox News

'God did that:' Trump's remarks and relationship with his faith

With either an idiot or someone insane in the White House, buyers continue to be leery of U.S. government debt. Rumors are that Japan and China are selling to reduce their exposure to U.S. government debt. Treasury yields surged on Tuesday after a brief pullback the previous day, resuming a sell-off streak as investors continue to distance themselves from U.S. government debt. The 10-year Treasury yield rose almost 2 basis points to trade at 4.386%. The 2-year Treasury yield also surged by 4 basis points to 3.839%. We have met the enemy and the enemy is us, as Pogo famously said.

China 10y: 1.718%
US 10y: 4.34%

Investors - also in the US of course - have better faith in China settling their debt than they have for the US right now. The prudent move is to borrow China money, not the US.

This is, of course, of no concern to the MAGAs. It will probably not affect anything.

I read yesterday that the U.S. needs to sell 1.9 trillion worth of bonds fairly imminently just to keep the doors open.

Good luck with that, considering the worlds view of the current administration.

No worries. Orange jesus will wave his magic wand and all will be right with the world….

quote:

Originally posted by Tumbleweed:
I read yesterday that the U.S. needs to sell 1.9 trillion worth of bonds fairly imminently just to keep the doors open.

Good luck with that, considering the worlds view of the current administration.

not a problem.