From Quoth the Raven (see paragraphs below):\u00a0 Long article just posted the intro….I know the long term affect of long end of the yield curve exploding upwards, but I don’t know the short term consequences.\u00a0 Hold tight as I think the ride is going to get bumpy no matter what you are invested in.\u00a0 We have not had a raising rate environment since the early 80’s.\u00a0 I think some or most on this board may remember what that was like.\u00a0 I don’t think we can go Volker-esque as it would bankrupt the gov’t even faster, but ST rates are definitely staying put as the US Govt can’t afford 2 trillion a year in interest ( 2 year at 5% time 40 trillion in debt).\u00a0 There will be limited issuance of 30 year UST bonds as Treasury simply can’t afford it.\u00a0 May you live in interesting times….<\/p>\n
Well, that didn\u2019t take long.<\/p>\n
Less than 24 hours\u00a0after I wrote that soaring bond yields in the United States and Japan were one of the major reasons I thought the AI bubble could finally begin breaking<\/a>\u00a0later this year and into 2027, global markets woke up Tuesday morning and decided to provide a helpful visual aid.<\/p>\n Japan got smoked, U.S. futures moved lower, bonds sold off across the developed world, oil pushed higher, and the 30 year U.S. Treasury yield punched above 5.3%, reaching its highest level since 2007.<\/p>\n The Nikkei fell roughly 2.5% Tuesday as investors dumped risk assets, while Japan\u2019s benchmark 10 year government bond yield briefly touched 2.945%, its highest level since 1996. The selloff extended further out the Japanese curve as well, with the 30 year JGB yield reaching roughly 4.1%, it\u2019s highest level in history.<\/p>\n EDITOR ADDED….SEE THE COMMENT SECTION FOR AN AMAZING CO-PILOT (AI) EXPLANATION OF YIELD CURVE AND REAL INTEREST RATES ON GOLD…AND WHERE WE ARE TODAY !!!<\/p>\n LIVE AN LEARN INSTANTANEOUSLY …WHAT A TIME TO BE ALIVE<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":" From Quoth the Raven (see paragraphs below):\u00a0 Long article just posted the intro….I know the long term affect of long end of the yield curve exploding upwards, but I don’t know the short term consequences.\u00a0 Hold tight as I think … Continue reading