Investors are selling off bonds from the U.S. government, as part of a trade known as “Sell America.”
The United States government has had to pay more to borrow in the global debt markets. On Wednesday, the Treasury department found that there was tepid demand for an auction for $20 billion worth of bonds, and ended up paying a slightly higher interest rate (or yield) than expected.
This has spooked markets. Yields on 30-year U.S. Treasuries have spiked above 5% this week — an unusual, and unsettling, surge in the price that the U.S. government pays on its long-term debt. An increase in bond yields is particularly damaging to the economy because it jacks up the interest rates on many things that consumers pay, such as on mortgages and other loans.
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Well trump did say he’d run the country like one of his businesses. Bankrupt, devoid of legitimate investors and full of corruption. It all checks out folks, still can’t believe people where dumb enough to vote for this
Yields on 30-year U.S. Treasuries have spiked above 5% this week
That’s insane, here (Denmark) we can borrow to purchase a house and pay over 30 years at 4% fixed rate interest rate!! https://www.totalkredit.dk/boliglan/nyhedsoversigt/2025/05/renteudsigten/
So the US government has worse credit rating than an average house buyer in Denmark. 😱 🤣 🤡
PS
before Trump took over the presidency, USA was one of the best performing economies in the world!IIRC during his first presidency our credit rating was downgraded from AAA to AA. This mentally impaired baboon is going to bankrupt us, just like he did to all his companies.
I just heard the cost of maintaining the current debt is about $1 trillion per year!
Now with worse credit rating that price will go up, and with the bill to cut taxes the deficit will grow even faster, adding further to the cost.
8 years ago, I bought a house at 3.25% interest on a 30 year loan. We are currently looking to move and interest rates are damn near 7% because of all the fuckery going on and it is probably going to keep going up since no one trusts anything in the economy right now.
I’d hate to have to buy a house in USA right now. High interest rates and I’d worry about the possibility of a collapse in house prices too.
Yeah that’s where we are at, sellers still think they are worth covid prices and the broader market is in complete chaos. If we weren’t out of room from having a smaller house with 2 kids, I would be more receptive to sticking it out but the chaos has become less manageable so we are looking for more room despite not really wanting to make any decisions right now.
Can you take out a mortgage and use it to buy 30-year US treasuries?
No it needs to be on real estate in Denmark to get that kind of loan.
My brother told me a while back that Canada and the EU were cooperating together to not buy US bonds, in retaliation for the tariffs. Back when HitlerPig suddenly put a 90-day pause on most of the tariffs it was directly because they were freaking out about what was happening in the bond market.
Whether it’s true that it’s deliberate retaliation or not, it’s a hell of a brilliant strategy against the Pig since higher interest rates on US bonds (basically like having your credit card’s rate go up, increasing your minimum payment due) could put the US in deep deep doo doo.
Of course it’s deliberate. Trump launched a trade war against the world and massively overplayed his hand. This is going to be devastating to the US economy for decades. But at the same time, they are cancelling the constitution so citizens don’t get to vote anymore, they’re just along for the horrible ride.
The reason I thought it was notable when my brother told me that is because all the articles I’ve seen, including this one, imply that the only reason bonds aren’t selling is just that people are nervous about the unstable situation and unreliability of the US to honor the debt. They don’t mention a coordinated act of retaliation by a group of governments.
This is all happening because of a reality show that convinced morons that this imbecile and business failure was a business genius for ratings.
Wish that sundowning old fuck would just sell the whole country back to Britain already then fuck the hell off…
That’s barely a step up. Let’s get sold to Denmark instead.
No worries. fElon is gonna save gajillions soon.
What does this mean for me? I have some bonds I bought a few years ago as a stable investment. Are they going to be worth nothing? Should I dump them?
People will be less interested in long term bonds that have a yield lower than the current rates. This makes those old bonds less valuable as people scramble to get the bonds with higher yield. Why loan the government money at 3% if you can be guaranteed 5%?
If you want to stay in bonds and you believe the US will need to keep raising rates to convince people to buy US debt, you can buy very short term bonds. STIP (which is an ETF) for example are very short term bonds so you can keep getting the higher rates.
So if you think that Trump will continue to do things that reduce faith in the stability of the US government then yes, dump the bonds.
lol
Why is this guy the one who is always in stock market news photos?
