CNA Explains: Why are bond yields rising?

Major market indices in the United States are in the green so far this year. Traditional investment wisdom dictates that when the stock market goes up, bond yields go down. But the 10-year US Treasury yield has hit its highest level since 2007, and the same goes for 30-year T-bills. Equities on Wall Street are still at lofty levels. CNA’s Roland Lim explains why.

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[accountantasia]

US has no money so raising the rate to attract more investors ?

[happymelon]

WHAT IS THE NATIONAL DEBT COSTING US?
The Congressional Budget Office (CBO) projects that interest payments will total $663 billion in fiscal year 2023 and rise rapidly throughout the next decade — climbing from $745 billion in 2024 to $1.4 trillion in 2033. In total, net interest payments will total nearly $10.6 trillion over the next decade. Relative to the size of the economy, interest will rise from 2.7 percent of GDP in fiscal year 2024 to 3.7 percent in 2033. The previous high for interest relative to GDP in the post-World War II era was 3.2 percent in 1991 — that ratio would now be exceeded in 2029.

[marktn]

Fact is higher risk is rewarded w higher returns, and hence, higher rates. Short-term risks rises had led to inverted yield curve. However, instead of that going down to normalize, long-term rate went up indicating long-term risks too. Therefore, it’s higher risks compounding into a longer period.

[happymelon]

😂Nobody want/dare to buy, the ONLY way--> raising the rate.

[anziar]

Because there are many opposition party members like pritam, lim tean, hsien yang and charles yeo being pursued by the police for crimes like lying, stalking, breach of trust, forgery, etc.

[daivietnguyen]

There are million different kind of taxes in the US, and yet, they are still running a deficit. But for some strange reasons, the US government can always managed to find some extra billion of dollars accidentally for Ukraine. Long live perpetual war indeed !!! No one has mastered this scheme better than the “beloved” uncle himself !!!

[letsworksimple]

you need to mention the huge debt of government employee salaries…and no cuts in sight

[anan-npif]

Good luck when USD dollars dropped and replaced. Whatever you have invested in the bond will be defaulted

[stand]

Because Amos Yee has been released to roam the Internet again!

[happymelon]

😆She thanks U$A taxpayer for the support.
Ukraine’s First Lady’s $1.1M Cartier Splurge Triggers Controversy
The First Lady reportedly went on a lavish shopping spree on Fifth Avenue in New York City, spending a staggering $1.1 million on Cartier jewelry alone.
During President Zelensky’s visit to the US, where he addressed the UN General Assembly and met with lawmakers in a bid to drum up support for Ukraine, his wife was spotted shopping on Fifth Avenue, the world’s most renowned shopping street. Home to prestigious brands like Armani, Gucci, and Harry Winston, Fifth Avenue also houses the famous Cartier Mansion where Olena Zelenska was seen.