Unfortunately taxes are already baked into the cake, and taxes need to rise.
But Republicans will insist otherwise, and rearrange the spending chairs on the Titanic.
So higher yields it will be until politics intervenes in November, or in 2028.
The fixes by the Treasury Department will be temporary and ineffective, pushing on a string.
Stanley Druckenmiller leads doubters who think Bessent’s bond ploys will fail
... “If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is an invoice,” he wrote in a Wall Street Journal op-ed piece. “Then do the only thing that durably lowers long-term yields: address the primary deficit.”
... Like some others, [Ryan] Swift doesn’t see anything terribly alarming about the recent rise in yields, saying the 30-year long bond is near “fundamental fair value” based on the Fed’s benchmark rate and expectations for the central bank, along with inflation, unemployment and market volatility.
The 30-year bond is only trading slightly above its 50-year average around 5.16%. The benchmark 10-year note as of Tuesday morning actually traded exactly in line with its 4.64% historical average going back to the early 1960s. ...
