The 10Y yield jumped from 3.9 to 4.35 in 24 hours

Can someone explain this to me like I'm a retard (which I am)?

Hedge funds are unloading treasuries to unwind their basis trades

this is probably the dumbest way an empire has ever died

no more credit, music stopped, forced deleveraging, americans in breadlines, hyperinflation

got it?

atleast the americans got to own the libs, right?

Trump just nuked global trade which is the back bone of the US dollar / debt. Here's comes hyperinflation.

but why?
isn't number go up a good thing?

Not my problem cuz I don’t even know what the 10 year yield is or does. And I have an Econ degree..

The U.S. has been a banana republic since 2020 and the smart institutions are finally keying in on this fact. There's probably going to be some sort of civil war within the next 20 years, better to get out of the dumpster fire while you still can. Europe and Japan might be stagnant puddles but at least you have some sort of political stability there.

No, not in this case.

Money is exiting the united states. Bonds are getting devalued bigly in realtime as we shitpost on this thread.

This is history.

Yield is the inverse of price

The higher it goes, the less demand there is. That means investors are less willing to risk that the US Treasury would be willing and able to pay them back over 10 years.

Absolutely fucking BASED. Fuck this fake and gay “economy”

Its not so much whether they'll get paid, but how much the units are worth when they do. So the market is pricing in much higher expected decline in the future value of dollars.

we're fucked, consumers will not have enough credit to buy higher priced goods.

gonna need dat dere UBI

Thanks to Peter Navarro and his imaginary friend Ron vera. America will collapse because of a schizophrenic’s economic advice lmaooo

With what money? lmfao

When you buy a bond you are effectively loaning money to the US government. Higher rates = people have decreased confidence in US repayments.

When you buy a bond you are effectively loaning money to the US government.

Selling bonds drains excess reserves from the banking system. The government issues the money, it never needs to borrow.

You know pump and dump?
The dump phase started. And they're dumping the US.

Hedge funds buy treasuries and sell treasury futures at the same time to profit from the price disparity, expecting the price of the future to converge to the price of the treasury when it matures. This falls apart when there is a flight into treasuries and treasuries suddenly become more expensive. The hedge funds have to cover their bets, so they sell their treasuries and the mass selling crashes the price and causes yields to go up.

Basically, treasury yields are out of whack because big players were making bets worth hundreds of billions of dollars that they would go one way, and now they are going the other way.

This is a massively deflationary event

Europe

political stability

lmao. They are gonna have their own civil wars over globalism. Not to mention they have to find a way to fight Russia while simultaneously being an anti-nativist refugee welafre state. Who are they gonna recruit? The whites they openly hate? The Muzzies who show up for free gibs?

But this appears to have happened several times in the past few years alone... Is it really a big deal? It's not even as high as it was a few months ago, yet.

Yields go up when stocks go up… guess which way stocks have been going lately?

it's different this time

sure pal

Yields go up when stocks go up… guess which way stocks have been going lately?

Good observation, now of think of this.

What does it mean then, that stocks are GOING DOWN, and yields are GOING UP. I'm going to bed, i'll read your answer tomorrow. It's going to be an exciting day.

Americans don't know what a bond is, let alone the implications of its yield.

It depends how bad it is, as it gets worse it will cause a credit contraction but to a certain point if the international banking system just basically collapses thats the end of the dollar as reserve currency and hyperinflation. Probably the end of the federal gov as well since their finances would be cooked. If these giga tariffs stay its basically an effect embargo like covid-level disruption. The global economy will collapse. I mean I can't imagine they'd let it happen, but here we are.

so can i finally buy a house

wow so stocks go up tomorrow

Trump is senile and demented along with his usual retardation. Everyone is terrified he'll kill them. Who knows what's actually going on in his head.

dumbasses screeching about an old man being senile voting in another old man who is naturally vindictive and aggressive

he goes crazy and burns the world down

I think God is real but is a fucking dick

Why is it so bad? It's been higher in the last 2 years.

China won, huh?

Stocks going down and yields are going up, we deep fucked.
Stocks have been rising for the past two years, now they are going down.

Why is that decoupling so bad?

Americans didn't know how many bonds and how much American debt was owned by the Chinese

its not so high yet but the spike and that its happening when the market is crashing is concerning, usually yields crash when markets crash as its usually a safe haven.

It was high before Trump actually took office and the market was kissing his ass thinking he'd just cut regs and taxes. But then with all the doge and tariff stuff the market started pricing in recession which is why yields go down. Now the recession is basically guaranteed and the question is whether it will be a recession or a depression or dark age, its concerning that yields are increasing, not decreasing as one would expect for a normal recession, like confidence in the US currency/debt itself is shaking.

sounds priced in already

it was priced in, Anon Babble is just being raided by panicans bigly today

im starting to think theyre not even panicans but more like poorupeans

/bizl thinks the Chinese are behind this

It's much worse than that. These are domestic financial institutions that are converting treasuries to raise cash to meet short term financial obligations. The equivalent of taking money out of your 401k to pay your rent.

wow they're just like me :^)

Whats priced in? The S&P500 is down like 15% since Trump took office. This definitely wasn't priced in. Most forecasters didn't predict recession, now its nearly 100% we'll have one. So yields rising to where they were in Jan when everyone was way more optimistic is concerning, you'd expect them to be falling.

Japan will buy the treasuries that get dumped by China

yield were purposefully being brought up because stock were to hot, yields slow stock growth, Government did this to stop inflation. Yields going up mean even harder stock dump. Yields are going up due to foreign government duping Tbills.

it's real

holy shit

Says who? Some gay stock rule book.."Oh gosh Alice, the bond yields are going up! I have to sell all my stocks now!" Fuck off.

I don’t get it can’t we just put a bigger tariff on China to pay for more treasuries seems easy fix

i would like to elect you president

Most forecasters didn't predict recession, now its nearly 100% we'll have one

short term yields where higher than long term back in november, who the fuck didn't see a recession coming

Rational cost vs risk management. bonds and stocks are a competing products, yields going up are like McDonald lowering the cost of all their burgers, meanwhile burger king has a salmonella outbreak and could make you sick if you eat it

oh no the fake and gay economy noooo aaaa pls noooo donnnt

BITCOIN WILL BE FLOODED NIGGERS GET IN NOW WE HIT THE BOTTOM

Tie getting any gibs into fighting russia. Welfare states saved.

What is Trump revalues gold?

If you have cash. can you sell a house?

japan is the #1 owner of us bonds and i don't think they're holding