What to know:
- So, Wednesday’s U.S. Treasury auction was like a surprise party for 10-year notes—everyone showed up! 🎉 Apparently, the rumor that no one cares about U.S. debt is just that: a rumor.
- And guess what? Thursday’s 30-year bond sale is like the sequel nobody asked for, but we’re all going to watch anyway.
- Fun fact: the U.S. national debt is over $36 trillion. Yes, trillion with a “T.” Some folks are suggesting we invest in bitcoin and gold instead. Because why not throw a little chaos into the mix? 🤷♀️
So, Wednesday’s auction of 10-year U.S. Treasury notes totally flipped the script on the idea that investors are ditching U.S. government debt for the shiny allure of bitcoin and gold. Who knew? 💁♀️
Now, Thursday’s sale of $22 billion in 30-year bonds might just give us a peek into whether investors still trust the fiscal policies of our dear President Trump, who kicked off the global trade war like it was a game of Monopoly gone wrong. 🏦
At the June 11 auction, demand for the $39 billion of 10-year notes, which offered a yield of 4.421%, was so high it outstripped supply by more than 2.5 times. Talk about a hot commodity! 🔥 The primary dealer takedown was a mere 9%, the fourth-lowest on record. Looks like investors did the heavy lifting here. Primary dealers are basically the cool kids authorized by the central bank to trade government bonds. The takedown? That’s just fancy talk for how much new debt they’re willing to swallow themselves.
Worsening debt situation
As of June, the U.S. total gross national debt is over $36 trillion—more than 120% of the country’s GDP. Yes, you read that right. 😱
The deficit, or the amount the government spends over what it brings in, was $1.8 trillion in 2024. And guess what? It’s expected to balloon by another $2.4 trillion thanks to Trump’s tax cuts. Because who doesn’t love a good financial crisis? 💔
So, with all this new issuance, it’s likely to make things worse. Analysts are pointing to bitcoin and gold as the new life rafts in this fiscal Titanic. 🚢
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2025-06-12 12:09