Home Forums Wealth 30 Year Treasury Yield Hits 20 Year High

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    • #13165
      BigBalls
      Participant

      Maybe I’m being a drama queen by harping on this, but this seems like a big deal. This could create stock market volatility. It also speaks to bigger problems for the economy in the coming months. Financial markets don’t get bamboozled by bullshet, unlike idiot voters.

      The anemic growth of the economy is about to get worse, inflation is going to get worse, employment will continue its slow growth, unemployment will continue to slowly increase. I freaking warned you these policies were inflationary, but no, “ oh DOGE will find  fraud that will eliminate income taxes, tariffs will pay for everything “. How is that working out? The China trip came back with no deals despite selling out Taiwan, encouraging China to buy more US land, and allowing for more Chinese students to take our kids place in universities.

      The administration continues its bumbling, stumbling, rambling silliness in this war. These incompetent fools need to find an off-ramp and get out of this mess.

      “Two-year and 10-year Treasurys are seeing their highest yields since February 2025. Meanwhile, the 30-year Treasury has risen over 5%, the highest since 2007. Bond markets are reacting to growing pessimism about a resolution to the Middle East conflict, a rebound to inflation, and a lack of major announcements following the Trump-Xi meeting in China.”

      Here is the good news for savvy investors, we can profit from this instability and panic. Stay calm.

      https://finance.yahoo.com/economy/policy/articles/us-30-yield-hits-highest-134400787.html

       

      • This topic was modified 14 hours, 39 minutes ago by BigBalls.
      • This topic was modified 14 hours, 35 minutes ago by BigBalls.
    • #13170
      RWC
      Participant

      Good points, and as far as the stock market goes there always seemed to be five major causes to a bear market.

      *Rising interest rates. Check

      *Rising inflation. Check

      *Tight money. The Fed hasn’t really pulled in their horns and taken away the punch bowl yet.

      *Rapid economic growth. No on that one

      *Valuation. Check, the market is selling at a very high multiple.

      3 out of 5 are in dangerous territory IMO. Have no idea how this plays out but the administration better get their shit together before things get real ugly.

      • #13173
        BigBalls
        Participant

        Bingo RWC. Bingo.

        We have gone from three possible rate cuts this year to now facing rate hikes. The invoice for the Iran silliness is still building. That expense is getting heavier by the day and there is no end in sight. Pretty soon there will be no choice but to raise rates (Tight money, check)  or face the wrath of the bond vigilantes. I think the FED will hold rates steady in June but after that it could get dicey. The US is now dipping into the strategic oil reserve to prevent gas prices from exploding further but that won’t be enough. The Strait needs to flow and soon.

        The strategy so far to keep the markets going is:

        Iran is begging for a deal

        We are close to a deal

        But after 2 months of that it is clear that line isn’t going to work for much longer.

        This whole thing has been mishandled. Clearly China isn’t going to put pressure on Iran  to quit and neither is Russia. They are both loving this mess.

        I don’t have a crystal  ball but this war needs to end now or there will be some serious repercussions. If anything it is interesting to watch.

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