All posts tagged "Bond Market"

Two news anchors reacted with alarm to the global bond selloff and mocked the Trump administration's failed response.

On Tuesday, CNN anchor Erin Burnett and Richard Quest, the host of Quest Means Business, explained what's happening in the global bond market and why it spells trouble for major economies.

Burnett described how "turmoil" like the war in Iran has led to "meaningful economic impacts, and people experience them every single day." Referring to a global bond selloff, Burnett explained, "something happened today in the market that was sort of a five-alarm fire when it comes to where things are going."...

President Donald Trump's threat to use military intervention to handle the troubled bond markets is baffling his online critics.

On Friday, a reporter asked Trump about increasing bond yields, which Treasury Secretary Scott Bessent has struggled to contain after a failed debt buyback intervention earlier this week.

"Have you talked to Bessent about another type of intervention?" a reporter asked Trump....

President Donald Trump on Friday answered a reporter's question about calming the turbulent bond market by saying he'll use military force.

Trump was asked whether he had spoken with Treasury Secretary Scott Bessent about "another type of intervention" after bond yields climbed back to multi-year highs.

"The ultimate intervention is our military," Trump said. "And if we have to use that, we will."...

White House insiders were reportedly reeling Monday as President Donald Trump's Department of Justice launched its investigation of Federal Reserve Chair Jerome Powell, prompting anxiety over financial market disruptions.

The Trump administration was apparently in "damage-control mode" after the news heightened over the DOJ's criminal probe announcement that alleges Powell lied about the scope of renovations at the Fed headquarters, Politico reported.

"Privately, some White House officials see the episode as radioactive, with aides and allies eager to distance themselves from a probe they believe could do more damage to the White House than to Powell," according to Politico. "One of the five people familiar said some inside and close to the White House are 'freaked out' that a further threat to the Fed chief’s job security could spook the bond market."...

In a perfect world, Congress and the courts would keep President Donald Trump's executive branch in line by balancing out his portion of the country's power base. Absent their effectiveness, the financial markets may be the last line of defense to moderate Trump's behavior, according to new analysis in The Bulwark.

Writer Matt Johnson posited that even as these vital institutions cave in to Trump's demands, "one important check remains: There’s nothing Trump can do to bend global financial markets to his will."

As an example, Johnson wrote that Trump's tariffs and the resulting stock market chaos were somewhat quelled last week when Trump was "bullied into submission" by the bond market. Trump announced that he was backing off his trade war because people were "getting yippee," but a massive sell-off in U.S. bonds led a CNN analyst to call it a rare economic "red flag" that even Trump couldn't ignore....

Trading in U.S. government debt took the last-minute US budget deal in its stride early on Thursday when treasury bond yields were slightly lower than before the agreement.