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HE CAN HUFF. HE CAN PUFF. BUT……
THE BOND MARKET DOESN’T BLINK.
Donald Trump might be the master of media manipulation…
But the bond market? It doesn’t watch Fox News.
It doesn’t vote.
And it doesn’t flinch.
He’s a loud talker, that’s part of the show.
Big threats.
Big headlines.
But Wall Street knows better.
He threatened to fire the head of the Fed.
Then he backed down.
He pushed tariffs to the limit.
Then he pulled back.
Right now, trade wars are getting the attention, but the real storm is building in the bond market.
US Treasury yields are fast approaching 5.2%, and that’s huge.
It means borrowing costs in the US are at their highest in over two decades.
The American fiscal deficit isn’t all Trump’s fault, but bond traders don’t care about blame.
They care about risk.
And they’re starting to price it in.
Here’s the kicker:
Trump doesn’t like balancing books.
