Actually, I’m pretty sure it’s the inverse in this instance. There is a lack of faith in the US to repay its debts, so they have to increase the rates to attract buyers.
Typically, in bad times rates go down as people are clamoring for stable/risk free places to store cash.
So basically, even though things aren’t looking good economy wise, people are still avoiding bonds and so the government has to jack up rates to move bonds. This is tied to some of the crazy moves Trump/Republicans have been making that almost destroyed the US bond market.
Yeah this is a sign that the economy is tanking and people are flocking to stable bonds in order to have a guaranteed return.
This is some mental gymnastics the og tweet is pulling.
Actually, I’m pretty sure it’s the inverse in this instance. There is a lack of faith in the US to repay its debts, so they have to increase the rates to attract buyers.
Typically, in bad times rates go down as people are clamoring for stable/risk free places to store cash.
So basically, even though things aren’t looking good economy wise, people are still avoiding bonds and so the government has to jack up rates to move bonds. This is tied to some of the crazy moves Trump/Republicans have been making that almost destroyed the US bond market.