Started By
Message

re: Will bond vigilantes finally force the hand of the US government to slow the deficit?

Posted on 5/21/25 at 4:43 pm to
Posted by TerryDawg03
The Deep South
Member since Dec 2012
17670 posts
Posted on 5/21/25 at 4:43 pm to
quote:

Shouldn’t this be on the money board? What’s the political angle here?


The cost of US borrowing rates, and the rates of individual borrowers as a consequence, is increasing based on the decisions of politicians. Seems political.
Posted by RollTide4Ever
Nashville
Member since Nov 2006
19641 posts
Posted on 5/21/25 at 4:44 pm to
Peter schiff podcast, thank me later.
Posted by RollTide4Ever
Nashville
Member since Nov 2006
19641 posts
Posted on 5/21/25 at 4:45 pm to
It gets better, the Trump administration hinted at changing the terms of bonds in the future. Basically a default.
Posted by Bass Tiger
Member since Oct 2014
53741 posts
Posted on 5/21/25 at 4:55 pm to
quote:

Weak 20y treasury auction just wrapped up and long term rates have spiked across the curve, but have steepened as well.

10y up to 4.59
20y up to 5.11
30y up to 5.08

Apparently the bond market isn’t in love with the spending/tax package.



A few more failed treasury/bond auctions and shite could go south real fast.

You can only debase fiat currency so much before the fiat currency begins to rapidly lose favor with those who hold the fiat currency and they quickly commence to dumping their fiat currency.

What's everyone's plan when the debt spiral finally kicks into the last phase of no return?
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11857 posts
Posted on 5/21/25 at 4:55 pm to
Demand is inelastic. The yields aren’t even that relevant for the users because they’re collecting spreads for the most part via Repo.

If anything higher yields growth and inflation expectations rising which isn’t a bad thing.

On first look indirects took down 70% of the auction so I’m not why you’re thinking this was a bad auction?
This post was edited on 5/21/25 at 5:13 pm
Posted by Bass Tiger
Member since Oct 2014
53741 posts
Posted on 5/21/25 at 5:12 pm to
quote:

Demand is inelastic. The yields aren’t even that relevant for the users because they’re collecting spreads for the most part via Repo.


The law of large numbers and debasement are threatening to end the USD as the global reserve currency because the US is heading towards fiscal insolvency. $1 trillion to service the $37 trillion debt in 2025, unsustainable.

The only way the US avoids going down the fiscal shitter is if DC Uniparty politicians show they are serious about curtailing $2 trillion annual deficits by passing a balanced budget amendment....... and they won't do it.

Just a few more failed treasury/bond auctions where the Fed has to monetize the debt and the US may be in dire straits.......INFLATION/DEBASEMENT!!!!
Posted by biscuitsngravy
Tejas, north America
Member since Jan 2011
3775 posts
Posted on 5/21/25 at 5:13 pm to
This, exactly. 20 year auction today was very weak.
first pageprev pagePage 2 of 2Next pagelast page
refresh

Back to top
logoFollow TigerDroppings for LSU Football News
Follow us on X, Facebook and Instagram to get the latest updates on LSU Football and Recruiting.

FacebookXInstagram