Rising Treasury Yields Could Sink More Ships

Recent rise in treasury yields could further tighten lending rates and cause more commercial debt to default. Despite outdated inflationary measures from the Fed, Treasury yields have been rising due to less confidence in the "greenback" as a global currency, BoJ's shift in its interest rate policy, and poor management on M1, M2, and M3 money supply. Defacto lawmakers (House and Senate) extending aid abroad to finance Eurasian conflicts and the Israeli's/ Palestinian war has decreased the dollar's value exponentially despite recent USD strength compared to foreign counterparts.

Rising yields pegged to rising interest rates ultimately decreases bond values. Current holdings of treasury bonds from banks, commercial lenders, and foreign governments are witnessing a devaluation of their assets due to such. Further rising in yields will cause more banks to fold due to defaults and depreciation of their balance sheets particularly those heavily invested in treasury bonds. On the flip side, a selling frenzy from foreign governments who hold T-bonds could spike yields further.

We could see bond yields rise intensely sending T-bonds values to decade lows in the coming months as Middle Eastern tensions between Israel and Palestine increase as Iran takes its stance in the conflict. Bond values will plummet as the Fed will attempt to cool markets only adding more fuel to the fire.

"Never try to catch a falling knife"... Let's see how the 🎲 roll.

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