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ˈdälfən™🐬 💥 🌊

It’s possible that is trying to cause an economic downturn to lower borrowing costs in the end. After all, he has been expressing aggravation with the Fed chair for not lowering interest rates further. It’s quite twisted and makes no sense because a lot of his ideas are pro-inflationary, but it’s possible.

~ 10-year Treasury yields are falling. Want the good news first? ~

marketplace.org/2025/03/05/10-

Marketplace · The good news/bad news about falling 10-year Treasury yields - MarketplaceWhile falling T-note interest rates may be good news for borrowing, it could also be a bad sign for the economy.
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ˈdälfən™🐬 💥 🌊

/2

A Yahoo Finance commentator said that is trying to cause a recession to lower the 10-year yield. While I wouldn’t go quite *that* far yet — after all, he *may* want his party to get elected again (?) — he definitely wants to lower borrowing costs to spur economic growth.

~ Trump wants lower yields on 10-year bonds. Can he make that happen? ~

marketplace.org/2025/02/06/tru

Marketplace · Trump wants lower yields on 10-year bonds. Can he make that happen?The new administration hopes that energy dominance and government efficiency can bring down borrowing rates.
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ˈdälfən™🐬 💥 🌊

/3

A prudent way to lower the 10-year yield is to lower (or eliminate) the nation’s budget (and its need to borrow to cover the subsequent .)

The must correct its budget deficit in the long-term. But massive tax cuts will not accomplish that goal. Even considering the “savings” the admin is attempting to find.

U.S. Federal Debt as % of GDP 140% 120% 100% 80% 60% 40% 20% 0% Dec-74 1. 121% Dec-22 Source: U.S. Treasury Department, as of 11/30/2024. Chart description: The time series chart displays the U.S. Federal Debt as a percentage of Gross Domestic. As of November 30, 2024, the U.S. Federal budget deficit was 7.1% of GDP compared to the 50-year average of 3.6% 11 (highlighted) Rising debt burden may contribute to a higher cost of borrowing over time, if investors demand higher yields to compensate them for any perceived credit risk. (end of highlighting) https://www.ishares.com/us/insights/debt-deficit-investing Accessed: 9 March 2025 at 1749 CST
To pay for expenses above the revenue it brings in - known as deficit spending - the government may issue more Treasuries, increasing the supply. More supply typically results in lower prices - assuming the market operates freely, and demand remains stable. Since bond prices and yields historically have been inversely related, more issuance of U.S. Treasuries could lead to higher yields. Higher yields, in turn, can increase the costs consumers pay for loans — such as for cars and homes — as well as the cost for the government to service its outstanding debts. In 2024, the U.S. government spent 33% more than the year prior paying off its debts (interest expense). 15 Since U.S. Treasuries play such a unique and central role in the global financial system, the impact of America's deficits are uncertain in the short- term. Over time the deficit can be reduced by: • Reduce government spending. Increase taxes... https://www.ishares.com/us/insights/debt-deficit-investing Accessed: 9 March 2025 at 1749 CST
#USeconomy#economics#trump
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ˈdälfən™🐬 💥 🌊

/4 🤿

Okay, so after digging into it further, it seems the current US Treasury Secretary, Scott Bessent, has been touting the admin’s plan to single-handedly lower the 10-year yield for quite a bit now.

To accomplish this feat, Bessent said Trump wants to “deregulate the economy…get this tax bill done… get energy down.”

~ Bessent's focus on 10-year US Treasury yield may let Fed off the hook ~
(from Feb 6, 2025)

reuters.com/markets/us/bessent

ˈdälfən™🐬 💥 🌊

Sigh… it’s the same stuff that didn’t work in the past (several different times).

#MyThoughts
Mar 09, 2025, 11:12 PM·Public
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