President Trump: Making America Great Again...

[Moliere]

If you're a buyer, yes (as long as the U.S. does not default). But if you're the seller (as are all of us), then we are paying more to service our debt. The U.S. is riskier, hence buyers (investors) require a higher rate of return.

I believe that graph is showing the return on the bond market, and a positive return is indicative of declining rates.

[myboynoah]

I believe that graph is showing the return on the bond market, and a positive return is indicative of declining rates.

Maybe you're correct.

[chrisrenrut]

Maybe you're correct.

Is that a good thing? Not sure we want the same economic conditions we experienced in 2020. Seems like Covid messed the economy up pretty good that year.

[Moliere]

Is that a good thing? Not sure we want the same economic conditions we experienced in 2020. Seems like Covid messed the economy up pretty good that year.

I’m sure sure if it’s good or bad, it’s just a thing. Yields were historically low for a long time over the past 20 or so years. I’m not sure having them continue to below is a good thing, but it’s a complicated matter. Low rates enabled a number of people to lock in cheap housing, which brought more buyers and wealth to people that already had homes, which increased the overall cost of buying a home. Wages haven’t really followed, which is why my kids may struggle for a while to buy a home after they graduate. But maybe the period in the 2000s and 2010s is an anomaly and not something we should strive for

One thing I think is clear is that the graphic makes it look like things are good under Trump and bad under Biden. While that’s true in the case of a bondholder, it’s certainly has little to do with either individually and a lot collectively. They both dumped hoards of money into the economy, which kit the economy on fire as it came out of the Covid whiplash, forcing the fed to raise their rates in an attempt to cool down the economy. So as long as yields stay steady or down and the economy continues to be fairly stable (god bless taco) then I think it’s a good indicator.

[Jeff Lebowski]

I’m sure sure if it’s good or bad, it’s just a thing. Yields were historically low for a long time over the past 20 or so years. I’m not sure having them continue to below is a good thing, but it’s a complicated matter. Low rates enabled a number of people to lock in cheap housing, which brought more buyers and wealth to people that already had homes, which increased the overall cost of buying a home. Wages haven’t really followed, which is why my kids may struggle for a while to buy a home after they graduate. But maybe the period in the 2000s and 2010s is an anomaly and not something we should strive for

One thing I think is clear is that the graphic makes it look like things are good under Trump and bad under Biden. While that’s true in the case of a bondholder, it’s certainly has little to do with either individually and a lot collectively. They both dumped hoards of money into the economy, which kit the economy on fire as it came out of the Covid whiplash, forcing Raytheon fed to raise their rates in an attempt to cool down the economy. So as long as yields stay steady or down and the economy continues to be fairly stable (god bless taco) then I think it’s a good indicator.

I had no idea Raytheon had such power!

[Maximus]

The church sent a letter to leaders in January about immigration. It specifically said church assistance could be given for food and clothing. But leaders should not provide counsel or assistance with housing, transportation, or advise on their immigration status.

the church wants to distance itself legally from anything that can be see as harboring or encouraging undocumented immigrants to remain in the US.

https://newsroom.churchofjesuschrist...w-family-unity

Yikes. We are willing to send them on missions but not willing to help them

[Moliere]

I had no idea Raytheon had such power!

I suck at typing from a phone

[LVAllen]

Is that a good thing? Not sure we want the same economic conditions we experienced in 2020. Seems like Covid messed the economy up pretty good that year.

Prices going up and rates/yields going down really only suggests one thing - that demand for T-bills are increasing. You can argue that demand is increasing because the economy is terrible and shaky, and T-bills have historically been a safe investment. (Why get 4% in T-bills when you can get 15% elsewhere in a hot economy?). You can also point out to the Fed's decision in allow its MBS assets to mature and to roll that money over to T-bills as a not-insignificant pressure on the prices and interest rates. Incidentally, that decision is also likely to drive mortgage rates up, since the Fed's holding huge amounts of MBS was widely credited with keeping rates lower.

[chrisrenrut]

What I’m taking from this is the government saw a graph that looked good and used it to brag that things are great! But no one else can seem to understand or agree why the graph actually means in the larger picture.

Where is Ron Vara when we need him most?

[dabrockster]

Yikes. We are willing to send them on missions but not willing to help them

Not sure where you are getting that. But go ahead and take the extreme interpretation.

[Joe Public]

It’s a total return chart. It combines both MTM capital appreciation/loss and interest paid. CY25 saw a comparatively higher yield than recent years (i.e., higher interest payments) and also experienced a negligible decline in yield YTD (i.e., perhaps a bit of MTM capital appreciation and certainly not the MTM capital loss of a rising-rate environment like 2024 for example).

[Jeff Lebowski]

It’s a total return chart. It combines both MTM capital appreciation/loss and interest paid. CY25 saw a comparatively higher yield than recent years (i.e., higher interest payments) and also experienced a negligible decline in yield YTD (i.e., perhaps a bit of MTM capital appreciation and certainly not the MTM capital loss of a rising-rate environment like 2024 for example).

En inglés, por favor.

[myboynoah]

So Joe, if these are U.S. treasury notes, the higher interest payments are being made by the USG, correct? Doesn't the USG set those rates? So doesn't that mean we are paying more to service our debt? Or is this the rates in a secondary market where these notes are bought and sold? Does that happen with treasury notes?

[myboynoah]

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[myboynoah]

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