i don't know what it means. do you?
ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com
I'll take a stab at it
" US Treasury are being forced to confront the reality that inflation is persistent, which has led to an increase in yields, recently reaching 4.7% on the 10 year, the highest since November."
going to 5% on the 10 year is a black flag that inflation is fk'n out of control. Treasury is openly admitting that it's not contained.
Now, if you had a ton of money in 10 year at 4.5 or recently bought at 4.7, you'll probably dump those m'fk's as quick as you can, because you are going to lose a ton of money.
Then, you will start to question the authenticity of the reporting numbers and job creation numbers.
Next question, do I want to but a 10 year at 5% when I just lost my ass at 4.7 a few months ago?
So, if everyone is selling.
The Treasury, in order to get people to buy, has to raise the 'yield' or interest rate on the 10 year, to 5% OR MORE.. BUT wait there's more.
What if, people don't believe that 5% is accurate. So they sell the 5%'ers.. Then the Treasury has to raise yields even higher, A vicious circle.
"That bond traders will
continue to sell bonds, driving yields up, in order to make it difficult for the Fed to cut rates — and essentially forcing the Fed to fight inflation head-on instead of capitulating to the economy and markets (should they crash)."
AND...
AS the 10 yr goes up, so does the 1 yr.. and 30 yr.. which means..
Shit's going to get expensive for the FED, aka, the US taxpayer on paying interest.
I like author's last bit here
"it needs to raise rates to combat inflation and make Treasuries more appealing, but higher rates would exacerbate the already burdensome debt servicing costs and threaten industries reliant on borrowing.
higher rates simply serve up another day of “shit burgers” to the economy, whereas
lower rates act as rocket fuel for economic activity (and market confidence)."
www.goodcarbadcar.net
mph) without breaking a sweat. The brake pedal lacks feedback and the very long braking distance of 42 meters on average from 100 km/h to full stop also does not exactly contribute to its safety record.
