Our drunken sailors in Congress better head to the detox.
Volatility. Powell mentioned it too. The 10-year yield is hugely volatile, and the drop over the past few days fits right in. Have a look.
The Spiking 10-Year Treasury Yields Apparently Rattled the Government’s Nerves.
Including $1.56 trillion in Q4 2023 & Q1 2024. Government has gone nuts.
Yield fixes all demand problems. You just have to hit the right number, and the right number today was 5%.
Tsunami of issuance meets Fed QT, Skittish Foreign Buyers, and US buyers demanding to be compensated for the risks of out-of-control deficits in an inflationary environment.
Trillions whooshing by so fast they’re hard to see.
Spiking Interest payments will hopefully, knock on wood, force the drunken sailors in Washington to go through detox.
“Higher for longer be damned”: consumers and businesses.