everyone at this G20 summit is saying the high bond yields aren't an issue and growth will solve everything

bessent went as far as to say, "well, the 10-year is actually felt since Trump took office."

which, he's right about because it was at 4.8% in January 2025 but it's also ignoring that at the time, the administration was freaking out about how to bring yields down which seems like the same concern today given the treasury said they'd buy back $1T of bonds last week

who knows...maybe the market can handle high yields?

yes, the 40T in debt really isn't the biggest short term concern since everyone continues to trade in USD but the cost of refinancing the $10T of debt we have to sell by end of year is affected by yields which makes it feel like something that matters more than these business leaders are saying

not to mention, the easiest way to get yields down is for the fed to raise rates since then there will be more incentive for people to buy bonds, but raising rates isn't really what the administration wants

very weird macro we are in but if stocks can handle high yields then maybe it is the new normal!

Source: amit