| > Long term bonds can be replaced with short term bonds which are constantly rolled over
Bessent tried that, didn't work to calm down the bond yields. Unless you meant the USA is not interested in longer term bonds, which is obviously untrue, because Bessent is intervening. > The bond yields are pricing in the future interest rates
For investors, the price is the risk they want to get compensation for. The investors are increasingly worried about the credibility of the USA. Sure, the USA can print dollars, but Banana Economics Class teaches you that trying to inflate oneself out of debt with reckless printing will have some adversarial effects. You can't fool smart money that easily. |
