Ok what's going on here? Yields are going up which means bond prices are going down. Fewer buyers of the world's

[applegrove]

https://bsky.app/profile/jeisinger.bsky.social/post/3lmdxfertcs2s

10 year Yield going vertical.

"Ok what’s going on here?

Yields are going up which means bond prices are going down.

Fewer buyers of the world’s safest asset.

Normally when the economy slows, there’s a flight to safety, not away from it.

Means the world may be abandoning America.

We are flirting with a true crisis."

[Bernardo de La Paz]

1. Could be China is selling. They own $700 B. Japan owns $1 T. Canada is 4th or 5th with $300 B. . . . . nt

[unblock]

2. China is dumping treasuries to drive rates up and screw our growth.

Rule number one of borrowing: don't try to screw your biggest creditor.

[mountain grammy]

3. Guess he'll have to nuke them

And I’m just a little kidding.

[dalton99a]

4. Kick

[Arazi]

5. It's bad, bad, bad...

[moniss]

6. Last week or so the credit rating agencies

were talking about making another downgrade of US rating on it's debt. We would still be investment grade according to the article but less rock solid for projections going forward. Most of that was prior to the last 7 days of insanity. I think the rating agencies assume Crumb The 1st would not be so crazy as to try and do removals at the Fed. I think their assumption is too rosy.

[jgo]

7. part of it may be investors needing to generate cash to pay for margin calls on stock portfolios

or other financial entities needing to generate cash for various reasons

[Liberal In Texas]

11. Margin call - As I understand it, you borrowed money to buy stock, now we want it repaid.

Because the value of the thing you bought on credit is below what you owe.

Also, as I recall, the First Republican Great Depression was partially caused by this borrowing money to buy stocks.

[RainCaster]

8. Time to buy European bonds

I assume there are such things. I'll ask my broker tomorrow about details.

[Melon]

9. Bond rates are up because nobody is buying

This is bad. The US is owing huge interest payments already. Margin calls are happening but it’s an overall loss of confidence.

[intrepidity]

10. It makes sense. Loss of confidence in the US govt.

What happens if/when China dumps its holdings? Hooboy. No doubt they see the writing on the wall and not only want to lock in profits, but also hurt the US govt in the process.

Where is the smart money going, though? That's the big question right now.

[bronxiteforever]

12. TSF hates America. The GOP trifecta plus the sick Supremes

could stop this but they would rather see the US burn.

[jgo]

13. The panel on CNBC is saying

it is a combination of four factors: (copying their graphic)
- profit-taking on "safe" assets
- "a rush for cash" to cover margin
- concerns about U.S. fiscal policy
- uncertainty about China and its treasury holdings

The last one in their narrative includes the point that with reduced major purchases of U.S. products by China, China has reduced ability to buy treasuries (same point for Japan), or they may want to retaliate by not buying or by selling (although it is U.S. and European concerns doing the bulk of selling of long term treasuries now according to the panel).

[applegrove]

14. Thanks for the clarification.