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.
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.