It would be wrong to imply that the market is being manipulated for the gain of some insiders. /s
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Forget stocks. The bond market is your Daddy now.
I am starting to get real concerned on what I am seeing play out. Its a very scary possible scenario starting to take shape.
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Those of us locked into our homes with sub 3% mortgages are even more locked in now. And probably for a long time.
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Some of the bond guys have been talking about stagflation and a real possibility of 10 year bond yields going as high as 9%. In 30 years I have never heard those type of conversations. If people are freaking out and markets cratering at 4.5% on a 10 year just think about 9%. Thats some 70’s early 80’s economic scenarios.
The other thing is Japan (1st) and China (2nd) own a ton of our treasuries and bonds. How can you have leverage in a trade war ovee them with the threat of them selling off treasuries and destabilizing our economy and the dollar.
The next 10 year auction is in May. It could be real interesting for the markets if China decides to send a message and back off regular purchases. The fallout will be crazy.
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How about China deciding to eat their $8-900 billion in US bonds by selling them on the open market. It would probably be worth it to them to finish us off. They’d make whatever pain back by having the world at their feet to trade with without us around imposing sanctions and causing issues for them.
When all is said and done, they can take more pain than we can. We have no bargaining chip here and it’s ludicrous to think we do.
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They don’t want to destroy their largest market, imo.
clt blames Boeing
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