Treasury Yields Soar as Ballooning U.S. Deficit Worries Wall Street

31 inverted_flag 9 5/21/2025, 10:52:21 PM investopedia.com ↗

Comments (9)

hshdhdhj4444 · 1h ago
The article mentions the yield is the highest since November 2023.

If I understand it correctly, this is different, however. In November the Fed was trying to increase rates to bring down inflation. But the high yields now are the result of a lack of private demand.

If that is indeed the case it’s very likely worrying.

suraci · 45m ago
don't worry, the UK will explode before the US
mindslight · 2h ago
Does anyone else have the sickening feeling that their actual plan is to straight up destroy USD, with the looters fleeing to hard assets and foreign/crypto currency, and the plebs' currency crisis then serving as the justification for naked fascism red in tooth and claw? With the narrative then shifting to the usual "Democrats did this! And we tried to stop it but we were too late!" nonsense, backed up by an army of "AI" spambots.

The tariff tantrum, destroying US soft power institutions with DOGE, alienating all of our allies with petty feuds, the constant framing of the United States' enviable global positions as bad things. None of these things make any sense if you actually want the United States to succeed.

jameslk · 7m ago
This present issue has been caused by decades of bad fiscal policy by both parties:

https://fred.stlouisfed.org/series/GFDEGDQ188S

The only presidential politician who sounded the alarm was Ross Perot, all the way back in the 90s

ty6853 · 1h ago
Anyone with 0.1% of a brain switched to hard assets during the COVID ~0% money printing mania.
hshdhdhj4444 · 57m ago
And they would have lost a record increase in U.S. assets across the board, including the US dollar, which should have gone down if the problem was money printing.

It’s rare to have such a clearly evident case of cause and effect. We know why yields are going up. Because investors don’t believe the U.S. government can control their budget deficits.

The recent rising yields have little to do with money printing from 4-5 years ago.

nemothekid · 1h ago
>Does anyone else have the sickening feeling that their actual plan is to straight up destroy USD

Stephen Miran, the chair of the Council of Economic Advisers under Trump, is pretty much trying to do this. He published 'A User's Guide to Restructuring the Global Trading System', and it pretty much outlines why they should destroy the USD - in order to bring manufacturing home, so that the warhawks will no longer have any reason to not start a war with China

suraci · 40m ago
I like Stephen Miran, I always like people who are (relatively) honest

> CEA Chairman Steve Miran Hudson Institute Event Remarks

https://www.whitehouse.gov/briefings-statements/2025/04/cea-...

mindslight · 25m ago
It's a bit of a stretch to call this juxtaposition of topics, with absolutely zero analysis of how they're connected, honest:

> we tax hardworking Americans mightily to finance global security. On the financial side, the reserve function of the dollar has caused persistent currency distortions and contributed, along with other countries’ unfair barriers to trade, to unsustainable trade deficits.

Money is fungible between these two concerns. The excess demand for USD is a source of revenue for our economic empire, realized by the continual monetary inflation without nearly as much corresponding price inflation. Some of that monetary inflation has been used by the government (~"deficit spending"), but the sheer majority has been getting dumped into the financial industry to bid up existing assets as a handout to the rich. That is what has left the American worker high and dry - near complete inability for the US government to use that already-centralized revenue to help wider society, due to a political movement based around fake austerity.

The article continues on using the passive voice to describe multiple things that the US government could have put a stop to any time it wanted, framed as if they were being done to us by other countries. For example:

> in the years running up to the 2008 crash, China along with many foreign financial institutions, increased their holdings of U.S. mortgage debt, which helped fuel the housing bubble, forcing hundreds of billions of dollars of credit into the housing sector without regard as to whether the investments made sense

Obviously if the government had set interest rates higher rather than lower, there would have been fewer mortgage bonds to buy and the dollars would have had to go elsewhere. I don't know if this pattern is deliberate or just an inevitable result of the bizzarro framing where having the world reserve currency is asserted to be a liability, but either way it is most certainly not honest.