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Post by nuevowavo on Jul 3, 2024 14:02:53 GMT -5
I know most of us don't pay much attention to the bond market, other than short term interest rates on savings and long term mortgage rates, but the long term Treasury market had an interesting reaction to the debate. The market priced in the probability of a Trump victory after the debate. The yield on the 10 year Treasury bond jumped from 4.29% to 4.48%, the highest since May. That's because the market believes that a Trump presidency will result in higher inflation, more government spending and borrowing, and therefore a greater supply of new Treasury bond issuance and higher deficits. To be fair, a stronger economy , as well.
""We think markets see a potential mix of stronger economic growth, higher inflation, and more Treasury supply in the event Trump wins," Ed Yardeni explained.
The spike in yields could partially be explained by deficit concerns, as economics experts say a second Trump presidency would likely widen the federal deficit by up to $5 trillion through the coming decade, Yardeni added.
The Republican candidate has pledged to extend individual and estate tax cuts he introduced in his first term, which are set to expire next year.
As bond traders are sensitive to high levels of government debt, unchecked deficit spending could prompt market "vigilantes" to stop buying US bonds and send yields soaring, Yardeni has repeatedly warned."
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Post by meateater on Jul 3, 2024 14:57:20 GMT -5
if you cant afford to pay your bills you aint buying bonds. did you see credit card debt is the highest in history. things are going great .
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Post by ferris1248 on Jul 3, 2024 15:08:23 GMT -5
if you cant afford to pay your bills you aint buying bonds. did you see credit card debt is the highest in history. things are going great . You need to understand how it all ties in. |
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Post by nuevowavo on Jul 3, 2024 16:58:41 GMT -5
if you cant afford to pay your bills you aint buying bonds. did you see credit card debt is the highest in history. things are going great .
My post wasn't about buying bonds. It was about the perception of the effect of a Trump presidency on inflation, spending and the deficit. And the fact that interest rates immediately rose after the debate, on the expectation that Trump will win.
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Post by illinoisfisherman on Jul 3, 2024 17:45:57 GMT -5
Or
The interest rate rose when it became apparent that we are being led by a brain dead puppet!
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Post by cadman on Jul 3, 2024 17:51:46 GMT -5
Or The interest rate rose when it became apparent that we are being led by a brain dead puppet! He's talking 10 year bonds. |
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Post by PolarsStepdad on Jul 3, 2024 17:53:06 GMT -5
if you cant afford to pay your bills you aint buying bonds. did you see credit card debt is the highest in history. things are going great . Yeah dumb fucks with little financial literacy keep getting them and maxing them out at 30%. I almost feel bad for them. One thing I don't feel bad for is the banks. We do this every few years now. Crashes and major corrections used to be once in a lifetime. Then once in a generation. Then once a decade. Now we are overdue for a couple. If you can't afford to buy groceries you sure as hell are not going to be able to buy them plus pay a CC bill. |
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Post by ferris1248 on Jul 3, 2024 19:00:03 GMT -5
Or The interest rate rose when it became apparent that we are being led by a brain dead puppet! This is a comment by a brain dead Trump disciple who admittedly knows very little about how the financial market works. |
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Post by nuevowavo on Jul 5, 2024 13:19:40 GMT -5
Or The interest rate rose when it became apparent that we are being led by a brain dead puppet!
That might be the single most clueless thing you've ever posted. And there's some tough competition!
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Post by dragonbait on Jul 5, 2024 13:33:48 GMT -5
Or The interest rate rose when it became apparent that we are being led by a brain dead puppet!
That might be the single most clueless thing you've ever posted. And there's some tough competition!
He prints these posts out and hangs them from his rear view mirror so he can park in a handicap parking spot, the police look and just move on |
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