Bond Market Meltdown! Is This the End of Easy Money?

What in the World is Going On?!

Aw phooey! Donald Duck here reporting live from my lily pad and let me tell ya things are quackers! The bond market usually as exciting as watching paint dry is suddenly doing the jitterbug! Prices are tumbling and yields are doing a high dive! And during a recession?! That's rarer than me winning a pie eating contest against Gladstone Gander!

Treasury Trouble: Higher Than My Temper!

This 10 year Treasury note yield… oy vey! It jumped 11 basis points to 4.37%! 4.37%!!! Overnight it was even higher than my uncle Scrooge's money bin! And those tariffs Trump put in place from last week? The rate on goods from China is at 104%!!! It's higher than my patience when Huey Dewey and Louie are pulling pranks! Remember yields and prices move in opposite directions! It's like me and Gladstone always fighting for Daisy!

Tariff Tantrums and Trade Turmoil: Oh Boy Oh Boy Oh Boy!

Trump's trade war is getting uglier than Peg Leg Pete's smile! China retaliated and the S&P 500 is dropping faster than me trying to ice skate! Now usually folks run to bonds for safety when the economy looks like it's doing a belly flop but not this time. That iShares 20+ year Treasury Bond ETF is down more than 6% this week!

Is China and Japan Ditching Us? Yikes!

Some folks are saying that those villains in the trade war might be selling their U.S. government bonds! Can you imagine? A 10 year bond auction is coming up and who usually buys those? Japan China the U.K. the countries we're fighting with! That would be the worst! Like getting caught in a rainstorm without an umbrella!

Backfiring Tariffs? Time to Throw a Temper Tantrum!

Higher yields? That's bad news for the White House! They were bragging about low rates before. Now not so much! The experts are saying those fixed income investors are starting to worry that China and other foreigners might start selling their U.S. Treasuries. But it also hurts the Federal Reserve. It's harder to cut rates when prices are rising!

Can't Win for Losing!

If the Fed cuts rates it might make things even worse leading to more inflation. The market's going crazier than me trying to fix my car! It's one big mess! Looks like I'm going to need a whole lot of chocolate cake to get through this. Aw phooey! This is worse than getting a bill from Scrooge McDuck!