Eh, What's Up With These Tumbling Treasury Troubles, Doc?

Of Course There's a Problem!

Eh what's up doc? Seems like there's a real ruckus in the ol' bond market! All this talk about Moody's downgrading the U.S. credit rating and that Trump fella's tax bill has got investors jumpin' around like a flea in a dog pound! They're re thinkin' things because they're scared of deficits see? It's like when Yosemite Sam realizes I've swapped his gold with rocks – pure unadulterated panic!

That Ain't Beautiful Folks!

Now this tax bill supposedly 'big and beautiful,' ain't ticklin' nobody's funny bone. Seems this 'beautiful' bill could send US debt soaring higher than me when I dig a tunnel to Pismo Beach. "USTs were beaten up in an ugly sell off," says some fella named Vishnu. Sounds painful! All this worryin' pushed the U.S. 30 year Treasury yield past 5%. Higher than my carrot consumption on a Tuesday!

Eastward Ho... No Wait They're Sellin'!

So the U.S. Treasury is like a leaky carrot – everybody's tryin' to ditch it. Last month investors were hoppin' over to Japan and Germany. But this time? They're bailin' out of bonds everywhere! It's a regular exodus folks! Even I wouldn't wanna hold onto a bond that's about to blow!

It's Contagious I Tell Ya!

Seems this bond sell off is spreadin' faster than gossip at a square dance! Each market's got its own reasons but the main ingredient in this stew is a growin' worry about how governments are managin' their money. As they say 'These concerns are prompting a reassessment of the term premium required to hold longer dated bonds.' Fancy talk if you ask me!

Meanwhile in Japan...

Japan's gettin' in on the action too! Their 40 year government bond yield hit a record high higher than my ears! And the Bank of Japan might tighten things up which ain't helpin' matters. This sell off in Japanese government bonds is makin' U.S. debt look less attractive than a muddy puddle! As someone once said "By making Japanese assets an attractive alternative for local investors it encourages further divestment from the U.S."

Germany's Gone Sour!

Even Germany's gettin' the blues! Their bonds are bein' dumped like yesterday's newspapers. The 'German debt brake' is gone and everyone's talkin' about re armament and regional growth. But these wider deficits are causin' headaches! But there are exceptions: India and China bonds are stable probably more or less because they are isolated from rest of the World. As that genius Porky Pig would say: Th th th that's all folks!