Bond Market is King

[errolanderson]

The U.S. 10-year note is going up in a straight line. This is unsustainable. This spells market volatility for-the-ages. Sudden ‘n shocking. The only question left is . . . When? (IMO)

U.S. 10-year treasury now at a 22 year high.

[hedgehog]

18% interest 45 yrs ago
its coming back

[biglentil]

The global bond rout will ultimately lead to yield curve control (YCC), in which governments around the world resort to outright debt monetization, or digital money creation, to buy back their bonds, support their bond markets, and, so they hope, prevent yields from surging even higher and causing government finances to deteriorate further.

Yield curve control would dramatically increase the money supply (real inflation), causing price inflation to worsen even further and, ironically, intensifying the very bond meltdown it is intended to contain. All of this would be highly bullish for hard assets.

[shtferbrains]

Chart.

[errolanderson]

Strap-in, this could get real ugly . . . . The global bond rout is on.

U.S. treasury yields are now approaching a 25 year high. Mortgage rates are surging stateside. Housing crash? And the AI bubble is just that . . . a bubble. Now stir-in a U.S. administration that appears not to understand financial markets, or simply doesn't want to understand heading into midterms.

[sumdumguy]

What are GIC rates in US?

[ajl]

Rates on CD's (certificate of deposit similar to GIC) in the US vary but many are between 4 and 5.5% depending on term. So slightly higher than here were the best rate on 5 year GIC is 4.35%.

[biglentil]

GIC rates are a guarantee that will you earn less than the rate of inflation and still get the privelege of paying tax on an imaginery gain.

[errolanderson]

U.S. banks are looking sickly . . . . Goldman Sachs now down more than 20% from its July high.

U.S. stock indexes up today on bad jobs news. Ideas, Fed now won’t hike rates in October as a result of failing job market. Wahoo!

President stated that inflation will take care of the U.S. debt. Problem is; the middle class would be wiped out and the U.S. dollar may rival the Argentine Peso. A gong-show.

Meanwhile, the 30-year crossed 6% today. Mortgage costs surging. This would be a great script for the next Big Short 2 movie release . . . .

[Taiga]

A 30 year mortgage, that just sounds insane to me.