#us30yearyieldhitshighestsince2002 🤔
The 30-year bond is at its highest yield since
2007. Everyone says it's the end of the world inflation, bond vigilantes, government debt spiraling, foreign buyers fleeing.
Twenty basis points. That's how much it's moved in three years. If the world was ending, it would have moved a lot more than that.
What's actually happening: the yield curve got distorted when the Fed held rates too high for too long. Now it's trying to go back to normal. The short end wants to fall. The long end goes slightly up because the Fed won't get out of the way at the front. That's it. Curve normalization. Same thing happened in 2001, 2008, 2018, 2023. Every time, people screamed about the same things. Every time, they were wrong.
The guy who's been documenting this for twenty years says the bond market can't fix government spending. He's right about that. What he doesn't know is that something else can and it's already working. It just doesn't show up on the yield curve.$GPS $PORTAL $TUT
The 30-year bond is at its highest yield since
2007. Everyone says it's the end of the world inflation, bond vigilantes, government debt spiraling, foreign buyers fleeing.
Twenty basis points. That's how much it's moved in three years. If the world was ending, it would have moved a lot more than that.
What's actually happening: the yield curve got distorted when the Fed held rates too high for too long. Now it's trying to go back to normal. The short end wants to fall. The long end goes slightly up because the Fed won't get out of the way at the front. That's it. Curve normalization. Same thing happened in 2001, 2008, 2018, 2023. Every time, people screamed about the same things. Every time, they were wrong.
The guy who's been documenting this for twenty years says the bond market can't fix government spending. He's right about that. What he doesn't know is that something else can and it's already working. It just doesn't show up on the yield curve.$GPS $PORTAL $TUT