Posted on 06/06/2025 8:53:52 AM PDT by delta7
…. The 10-year Treasury yield added more than 7 basis points to 4.468%. The 2-year yield rose more than 9 basis points to 4.016%, while the 30-year bond yield advanced more than 4 basis points to sit at 4.931%.
One basis point equals 0.01%. Yields and prices move inversely in the bond market……
Whether or not he handled this correctly isn't the point (he didn't). Trump believes we can grow our way out of it. The courts and the Senate may stop his attempts to do so. Whether he must find the Andrew Jackson in him is slowly becoming moot with the core of the Deep State (the FED) refusing to drop rates despite lowering inflation with lower fuel and regulatory costs.
Show me a culture, a country, an institution, a company or an individual that survived unsustainable debt.The great reset that is coming will not be pleasant.
I have yet to read an article that intelligently explains the link between “spiking” yields and “bond markets collapsing” and why that matters. 4.9% for a 30-year Treasury Note does not sound exorbitant to me. Those of us who want to invest in interest bearing assets to fund our retirement rather than play the stock market, would appreciate a realistic interest rate.
The politicians are addicted to below-market, absurdly low interest rates that allow them to debt finance things the government has no business paying for. Trump is just upset the Fed has taken away the punch bowl. Time to sober up and spend responsibly. Reasonable market rates are a good thing.
Higher bond interest rates is the canary in coal mine. Very ominous warning. But vast majority of masses are not familiar with signals from bond markets.
Stock up on food, water & guns.
100%
“Stock up on food, water & guns.”
I already went there when Treasury rates were double digits many years ago....
and then again for Y2K...
and 2012...
I am trying very hard not to yawn....
Lol.
I'd add, the big investors are addicted to a bloated market value that is not based on reality.
https://www.americanhartfordgold.com/bond-market-breakdown-rising-rates-threaten-americas-future/
Rising bond interest rates means rising interest rates on everything, including our debt payments, which now exceed $1 Trillion and rising. Our national debt increases, mortgage rates and loan rates increase, ….more unpayable debt and a much, much slower economy.
It is related to our “Debt Spiral”. The Federal Reserve has had to buy increasingly more of our unsold debt instruments, the Snake eating its own tail.
It can only go two ways, we default OR they start printing mountains of dollars.
Trapped…..unless they somehow massively reduce our $37 trillion debt, which we see isn’t going to happen.
With one huge difference, Mister.
National debt level was much much lower in those years. Interest payments on debt were minuscule percent of GDP. Now interest payments on national debt are BIGGER than defense budget. I know you are not familiar with all these numbers,
But things are much more ominous now. Federal government has to BORROW money by selling bonds to just pay interest on debt. Add to that ever expanding number of maturing bonds which must be paid in cash by selling more bonds. Foreign countries such as Japan, China are reducing purchase of US Treasury bonds. Less buyers means Treasury has to pay higher interest on new bond. It is a vicious circle and dangerous game.
We never have had the historic debt levels we have now…..all things eventually come to an end.
Of course we can kick the can further down the road, but fewer will buy our debt instruments, accelerating the Debt Spiral….as we are witnessing.
It is game over when we can not find buyers, many call it a Ponzi scheme, which it is.
I understand your points.
They are valid—and I am still a prep person—but these days I am very calm and methodical about it—regardless of blips in treasury interest rates or yields.
Oh good grief: the job report was Good!! People are working
Take off the tin foil. this is just NBC Fearmongering
Think of it like a company in the 1920's that was worth $500. Let's call that company Philip Morris and at the time they could only borrow $50. Now, after 256,528,901% growth - they can borrow more money that you can imagine.
Just be prepared. If a serious situation occurs, it will be sudden and without much advance notice.
It’s been 50 years of front page news about basis points. NOT.
Only after somebody dares even the mention of cutting taxes do the hysterics about debt start.
You speak wise words. But many low-information people will neither understand nor care.
The serious situation that I am worried about is one that many folks here think is a non-issue—and that is the impact of artificial intelligence on our way of life.
That disaster is coming fast—probably two to three years before it kicks in with full force.
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