The roughly $30 trillion Treasury market — widely seen as the bedrock of the global financial system — is facing a dangerous reckoning driven by a perfect storm of rising risks.
On Wall Street, bond-market professionals are warning that the tremors could affect your portfolio — whether you own bonds or not.
Long-end Treasury yields have been creeping higher for months, driven by several factors that could prove deleterious to the bond market’s long-term health. On July 31, the yield on the 30-year Treasury bond
TMUBMUSD30Y traded as high as 5.281%, according to Tradeweb data. That was the highest reading since the summer of 2007. Yields have remained just shy of that level ever since, including a near-retest on Tuesday.
Before the start of the Iran conflict, the outlook for the Treasury market was looking far more benign. But as crude-oil prices shot higher, they caused yields to climb in lockstep as rising energy prices reignited inflation fears.
Bitcoin was built for a moment like this. U.S. debt is closing in on $40 trillion. Yet Bitcoin has lost 47% in a year, while gold has gained 34%.
The answer sits in the bond market. After inflation, a 10-year Treasury now pays 2.42%. That is the bar every asset without a yield has to clear.
https://beincrypto.com/us-debt-interest-defense-treasury-yields/
Homeland Security Paid $464 Million for Airplanes. Then It Parked Them.
The agency used a no-bid contract to buy 10 used jets, saying they were urgently needed for deportation flights. But the fleet has largely sat idle for months.
US Set to Pay Most for 30-Year Debt in Quarter of a Century
https://finance.yahoo.com/economy/policy/articles/us-set-pay-most-30-080000426.html