Bond Market is King

[errolanderson]

Japanese bonds yields are now at historic highs. The U.S. 30-year treasury yield is highest since July, 2007. A liquidity crisis is unfolding rapidly. Japan has provided global liquidity due to their historical low rates allowing global buyers a swap trade effectively triggering a liquidity injection. Now rising Japan rates effectively drying up liquidity in global markets. In other words, FREE MONEY is drying up.

The ginormous U.S. debt now must be financed by higher rates. What is happening in the bond market right now is far more important than the price of oil. The bond market is off-the-radar until investors get slammed. AKA: Incoming right now . . . .

Gold and silver prices are dropping because of the liquidity squeeze in-progress and the race-for-cash. Bitcoin at-heightened risk of deeper losses (IMO). The free investor ride in the concentrated stock indexes may be coming to an end.

The bond market is the debt market and it has come home-to-roost.
Stock market fallout now at an elevated risk.

Fed printing insane amounts of dollars in-an-attempt to stay ahead of this debt storm. A losing battle (IMO). Bringing this to your attention as main stream media has done a lousy job informing investors of the enormous risk tied to the debt markets.

Errol’s Commodity Wire
errolanderson.substack.com

[TechAnalyst]

The bond market will likely force an escalation of the war with Iran as well.

Currently all sides believe that they have the upper hand and can outlast the other, satisfied with the standoff.

But markets aren’t buying it with reserves being depleted at a record pace. Nothing changing is turning bullish for energy prices, stoking inflation (actually stagflation) fears and driving up interest rates (with declining bond prices).

Interest rates at these levels were enough in the past to inspire the Trump administration to reverse course (the Liberation Day tariff pause was the greatest example). The problem is that options are limited for addressing the closure of the Strait of Hormuz other than a military escalation to try to break something free. It may work but it will likely be volatile in the meantime.

As Errol said, the bond market deserves your attention. Besides impacting your interest costs, it will certainly influence asset values and profitability.

[agstar77]

Escalation would mean a destruction of oil facilities in the middle east. 100 oil would be cheap. Economic meltdown , all thanks to the orange moron and his bowing to Israel and whatever dirt they have on the pervert.

[wrongway]

just imagine if in the last 12 years canada had developed its energy industry instead of trying to kill it just how much of a superpower canada would be. because of that blackfaced moron we can't even afford to fuel up the beloved snow birds... what a shit show.