This didn't entirely happen "overnight." As we have been warning since 2020, the US deficit spending crisis is at unsustainable levels. The US now has to issue to much debt to finance its deficit, that bond prices are dropping as a result. It's basic supply-demand dynamics. ht
Why now
Thesis: Supply-demand imbalance pressures Treasury prices
Catalyst to watch: Auction demand and deficit updates
Main risk: Demand surprise could ease yield pressure
Why it matters
Heavy Treasury issuance to fund deficits pressures bond prices, lifting yields across the curve.
Details
This didn't entirely happen "overnight." As we have been warning since 2020, the US deficit spending crisis is at unsustainable levels. The US now has to issue to much debt to finance its deficit, that bond prices are dropping as a result. It's basic supply-demand dynamics. https://t.co/SlKzOonTWw
Related assets & topics
Treasury BondsSources
- x · 2026-09-24 23:54 UTC