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Tim Wong's avatar

Trump, a localist and Musk, a globalist finally came to a clash and Musk as a businessman will know how to do with Trump to maintain his interest and the crash will finally fade out.

The US Department of treasury tried to suppress the 10 years' yield by purchasing bonds, but after the ECB rate cut the 10 years yields of European countries still maintain at high level. The global debt levels and the underlining inflation expectation will maintain the US 10 year yield to high level. 5% or above is still expected.

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Esther Yang's avatar

very well said. The clash between the localist and globalist. The only worry is those two are both with high ego. to me, 5% 10yr yield is definitely in cheap zone, should load.

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Tim Wong's avatar

The real worry Is the Crash between Trump and Powell while the former focuses on growth, the later focuses on inflation and doesn't want to lose the fame of FOMC as in 2022. If the 2 years yield rises to 4.3 level, stagflation scenario will be expected.

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Esther Yang's avatar

I think Powell will keep the front end intact

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