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Posted on 08/17/2026 11:25:40 AM PDT by Miami Rebel
Treasury yields were higher on Monday as traders looked ahead to the latest FOMC minutes due later in the week.
The 30-year Treasury yield, which is typically sensitive to geopolitical events, advanced more than 4 basis points to 5.311%. It reached its highest level since June 2007.
The 10-year Treasury note yield — the main benchmark for mortgages, auto loans and credit card debt — was more than 2 basis points higher at 4.724%.
The yield on the 2-year Treasury note, which typically reacts in line with short-term Federal Reserve interest rate decisions, rose more than 1 basis point to 4.182%.
One basis point equals 0.01%, or 1/100th of 1%, and yields and prices move inversely to one another.
Monday’s moves comes as investors await July’s FOMC meeting minutes, due Wednesday, for further insights into the Federal Reserve’s latest monetary policy decisions and potential future rates trajectory.
Bond yields rose during Friday’s session after retail sales fell by a surprise 0.6% last month, which came after a flat producer price index print month-on-month in July.
The Fed voted 9-3 to hold rates steady at between 3.50% and 3.75% for the fifth consecutive meeting on July 29. The three dissenting committee members — Beth Hammack of Cleveland, Neel Kashkari of Minneapolis and Lorie Logan of Dallas — instead called for a 25 basis point hike.
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Keeps getting better dont it?
Unbelievable.
I hate to say it, but at this point raising short-term rates may be what’s required to reverse the ascent of long-term ones.
I think even that would likely to - at best - delay the impact of the larger problem.
Deficits keep getting bigger and that simply cannot continue forever.
We need spending cuts - even pretty damn radical ones - and we forever get nothing but the opposite, regardless of who is in charge.
It simply cannot continue.
Wars are expensive.
DEBT ABOUT TO HIT 40 TRILLION
Just keep monetizing the debt, wheel barrels on sale.
What’s a wheel barrel?
The problem didn’t start in February.
No doubt, makes it worse. But the problem was bad and going in the wrong direction before Iran.
Governments and individuals that purchase U.S. bonds are demanding they be paid more for taking on higher risk. The Fed will be forced to increase Treasury rates in the coming months.
But I recall the problem wasn't nearly so bad in the 1990s.
Then came the Iraq War. The mortgage lending bailouts. The COVID spending. And now the Iran War.
FY2026 DoD spending so far = 763B
Interest = 963B
SS, Medicare, and Medicaid = 2.676T
Total of all programs = 6.283T
https://www.cbo.gov/system/files/2026-08/61983-2026-07-MBR.pdf
Higher interest rates means higher interest payments, meaning larger deficits, which means more treasuries must be issued, which leads to higher interest rates leading to larger deficits causing more treasuries to be issued... we are getting into 'snowball effect' territory without dramatic changes.
discusting
Lol!
Think you meant wheelbarrow.
It’s called the wheel of misfortune. The more you talk about how great the money is and how great we are doing and how it’s going to get better and better and everyone is going to make so much money unless they are stupid. The less money is worth and the more you need to support those claims.
In the 90s, our debt/GDP ratio was in the 55-65% range.
Today, it’s nearly double that.
In the 90s - and thank Newt more than Billy Bubba - budget deficits were actually shrinking (even briefly chipping into debt/surplus in 1998). Today, the *deficit itself* is growing annually, never mind those deficits add to the overall debt.
In 1998 - the total US debt was under 6 trillion. Today? We’ll be breezing past 40 trillion without breaking a sweat.
Yup. Even more depressing? I think we’re already there.
Doubly more depressing? We seem to live in a world now where too many people on both sides of the aisle believe “Save Me, Government!” and buy into whatever hackneyed fairy tales suit their reasons for profligate government spending based on eye-rolling promises about how different magic pixie dust promises will change the trajectory.
Lemme be blunt. No matter what is done, its temporary and the end will not be good.
Bailing Japan and countries like Argentina out?
We are eventually going to find out that there is nobody going to bail us out.
Some say default and restructure it.
I dont know. All i know is i listened when my elders talk about the great depression and how they got through it.
Funny thing in history. Two of the greatest depressions in our history started out/included with extreme tarrifs.
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