'Trump tariffs spark US government debt sell-off'

[Joinfortmill]

https://www.bbc.com/news/articles/c5yrr0e7499o


Confidence in the US economy is plummeting as investors dumped government debt amid growing concerns over the impact of Donald Trump's tariffs...The US does not normally need to offer high rates to attract buyers but on Wednesday the interest rate on bonds spiked sharply to touch the highest level since February at 4.5%...."Bonds should do well in times of turmoil as investors flee to safety, but Trump's trade war is now undermining the US debt market," he added.

Some analysts suggested that America's central bank - the US Federal Reserve - might be forced to step in if turbulence continues, in a move reminiscent of the Bank of England's emergency action in 2022 following Liz Truss's mini-Budget...."We see no other option for the Fed but to step in with emergency purchases of US Treasuries to stabilise the bond market," said George Saravelos, global head of FX research at Deutsche Bank.'

My words: There's no safe haven, people. Congress needs to act now to stop him.

[dalton99a]

1. Republicans in Congress are 100% complicit in this disaster.

[uponit7771]

4. Yep, they're looking at US safe haven getting face smashed and doing nothing

[LS0999]

2. US debt under this tyrant is junk

He won't even honor his own trade agreement. He didn't pay his own contractors. America is being run like the Trump Enterprise and will end up bankrupt in every way.

[uponit7771]

3. Yep, this was Trumps hedge; decreased energy cost and decreased cost of borrowing ... can't have that now and premium

... in my area has gone to near 4 a gallon even though 87 has stayed stable .. they're pushing the higher gas prices on premium fuel.

That's CRAZY !!! NEVER seen those prices ... even gasoline is spiking while crude is falling through the floor.

[Johonny]

5. FYI Trump 45, one of few presidents to crash

The stock market and bond market at the same time. Looks like Trump 47 about to duplicate that rare feature!

And the Fed buying debt is inflationary.

[dalton99a]

6. +1. The Trump stagflation is coming

[marble falls]

7. How will they deficit spend if nobody will buy T-Notes? Taxes will be sky high if we ...

... really go 'pay as you go', something Republicans claim to love but fear more than anything.

[malaise]

8. Who didn't see this coming?

Rec

[marble falls]

9. Mango Jebus. What he is not able to realize is that the US is a major exporter of debt ...

... China is a major holder of US debt by way of buying 30 year T-bills. The most important/valuable thing the US owns is it's record for always paying its bills and keeping its promises and treaties.

Mango Jebus is destroying all our strengths.

[lastlib]

15. (just a nit-pick)

T-bills have a maturity of one year or less. Anything longer is a note (up to 10 years to maturity), or a bond (over ten years). (no 30-year T-bills) T-bills are sold at discount and pay their interest at maturity. Treasury notes and bonds are sold at percentage of par, and pay interest on a regular schedule (may be subject to change under the current Crime Minister).
just FYI

[IronLionZion]

10. A head of lettuce lasted longer than Liz Truss

but I'm not 100% confident the USA will last longer than Trump.

[patphil]

11. This is getting out of control really fast.

Has Trump just unleashed the perfect storm?

[Renew Deal]

12. This bond yield stuff is getting attention

https://www.barrons.com/articles/treasury-yields-bond-market-selloff-1a201dfe

[aggiesal]

13. China owns over a Trillion dollars in U.S. Bonds & Japan is not far behind. ...

Last edited Wed Apr 9, 2025, 01:04 PM - Edit history (1)

You don't think they'll start selling them off just for spite?

We'll have to come up with the money to pay for those bonds that are sold, which we don't have.
Especially since the money Mierda47 & Mu$k are stealing needs to go to the U.S. Oligarchs through tax breaks.

China could go to another broker, but they'll get a less percentage on the dollar.
The broker would have to set the percentage low, so that when they sell it off, they'll make money
but still be less then the 100% of the bond. I'm thinking around 25% to 33% buy, selling at 50% to 66%.

[Deminpenn]

19. I believe I read that China is the largest US

bind holder.

[aggiesal]

20. Mierda47 strategy. Poke the Dragon. What could possibly go wrong? n/t

[Deminpenn]

23. Sometimes the dragon wins

We had a cartoon of a dragon sitting blissfully against a tree, working a toothpick with empty knights armor strewn about.

[Dreamer Tatum]

22. Um....WHAT?

You think if China sells its bond holdings, the US somehow has to come up with cash for that? Huh? How exactly does that work?

And you think China would sell United States Treasury bonds at 33 cents on the dollar? The safest investment in the history of the world?

Suggest you do some reading before you post stuff like this.

[aggiesal]

24. U.S. Bonds are covered by the U.S. Government ...

And no, I don't think they would sell it at 33% on the dollar.
I'm just saying that's a possibility. A low possibility and even lower probability.

[Dreamer Tatum]

25. You said that if China sells, the US has to come up with cash. No, they do not.

The bond functions as issued.

If US treasuries were resold by some moron at 33 cents on the dollar, every entity with a nickel to its name would kill to buy it.

[aggiesal]

28. Eventually that bond will make its way back into U.S. cofers so they will eventually have to pay it off. ...

Also, didn't I say
China could go to another broker, but they'll get a less percentage on the dollar.

So yes every broker with 2 nickels to rub together, would try to buy it.

[Dreamer Tatum]

30. Bond payments are clearly defined when it is issued. nt

[Scrivener7]

14. There it goes.

[CaptainTruth]

16. EU defense stocks look attractive but that's about it.

And fuck Trump.

[Figarosmom]

17. Figured this was coming...nt

[Martin Eden]

18. When the dollar is dumped as the world reserve currency

The USA economy will be in a world of hurt.

[surfered]

21. We're All Gonna Die! Thanks Trump

[BoRaGard]

26. King Krasnov (R-Felon) is pissing on the planet

most of it backsplashing across the fruited frigging plains

[Justice matters.]

27. But, but, but "if Kamala wins, the stock market will crash"

Then: "COVID is a Democrat's hoax! It's 15 cases and will go down to zero in two weeks. It will disappear."
Now: "We're going to be rich like you won't believe possible. It will be America's Golden Age."

1. Never admit you were wrong. No matter the consequences*
2. Never concede defeat: Fight, fight, fight. No matter the consequences*
3. Never take responsibility for anything. No matter the consequences*

* Emphasis mine.


Reality: China can stop financing the deficits. Oops.
Good luck with that sudden hyper-inflation... Depression.

[Tickle]

29. Why Bonds Can Be a Good Investment: But Be Aware: good/bad? idk

Stability: Bonds are generally less volatile than stocks, offering a more stable return.
Income: They pay regular interest (called "coupon payments&quot , which can be great for predictable income—especially in retirement.
Diversification: Adding bonds to your portfolio helps spread out risk, especially when stocks are shaky.
Safety (sometimes): U.S. Treasury bonds, for example, are backed by the government and considered very low-risk.


Interest Rates Matter: When rates go up, bond prices usually go down (and vice versa).

Inflation Risk: If inflation is high, the fixed return on bonds might not keep up with rising prices.

Lower Returns: Generally, bonds don’t grow your money as quickly as stocks.