Early Wednesday the yield on the 10-year US treasury note tagged 2.4o%. That means it's up 65 bps since election day and 105 bps from the post-Brexit low in July. You can call that the return of the bond vigilantes, and just in the nick of time. We have always been skeptical of the Trump economic program because it really wasn't one; it was just a collection of aspirations, quips, bromides and wrong-headed panaceas like the big infrastructure build. As we said in Trumped!
The Bond Vigilantes Are Back----Just In Time To Stop Trumponomics
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David Stockman’s Contra Corner isn’t your typical financial tipsheet. Instead it’s an ongoing dialogue about what’s really happening in the markets… the economy… and governments… so you can understand the world around you and make better decisions for yourself.
David believes the world -- certainly the United States -- is at a great inflection point in human history. The massive credit inflation of the last three decades has reached its apogee and is now going to splatter spectacularly.
This will have lasting ramifications on how governments tax and regulate you… the type of work you and your family members will have available and what you get paid… the value of your nest egg… and all other areas comprising your quality of life.