Global bonds are ticking bombs
Surging Bond Yields put pressure on all forms of Government. Bond yields also stress equities and gold pricing (those prices tend to go down). The USA 10-year had an Intra-day high not seen in 18-years, over 5%. Historically, US rates over 5% have caused massive market meltdowns.
Good thing nobody needs to borrow money. Well, we are a debt based economy so EVERYTHING runs off debt creation. US mortgage rates are now up over 100 basis points since their February 23rd lows. The week before the Iran War began. The average interest rate on a new 30Y mortgage hit 7.22% today, the highest since May 2024. In other words, the monthly payments on a new mortgage have gone up.
Checking world 10-year rates
UK
UK's bond market is collapsing. Today, the yield on a 30Y Bond in the UK hit 5.95%, its highest level since March 1998. Yields in the UK are now 15 TIMES above 2020 levels, with the highest borrowing costs among G7 countries.
France
Their 10-year is currently at 4.52%
Germany
Their 10-year is currently at 3.545%
Japan
Yields Surge To 30 Year High On Report Tokyo may hike Defense Spending To 3.5% Of GDP. Wait so higher rates and going to spend more? Hmm, something is not mathing properly!
USA
Yes, the land of big ideas and king $. We have Surging Bond Yields. Which is a $160 Trillion market making the equities pale in size. Increasing yields are putting pressure on all forms of Government. The USA 10-year had an Intra-day high not seen in 18-years, over 5%. Historically, when US rates are over 5% they become the market wrecker (bubble popper). Anyone else see historically high semi-conductors, software stocks, you name it at all time highs. Not sure it prudent to add to those positions.
The global outlier is China
China with their 10-year rate is 1.69%. They are playing the long game by buying way more Gold than any other nation. Which matches the gold transfer pattern from West to East being reported on obscure websites. Nothing to see here, all is well. Move along!
Summary
We are entering a crisis with very little in terms of economic growth to buoy or soften the crisis and/or lead a recovery. All while the gold reserves continues to flow from West to East. "When this breaks" a new system will be introduced to you and I may not find much we recognize. I don't know much so DYOR! This is NOT financial advice.
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