Thanks B:
Bonds are a product that the US sells for money. The profit margin it makes on those sales go right into its budget. It depends upon its reputation for being a safe and stable investment for purchasers. When Trump declares a global tariff war, purchasers either look elsewhere or demand a lower purchase price (or higher return), reflecting the increased risk of buying from an unstable vendor.
When Trump campaigned, he asked voters “what do you have to lose?”
Turns out, everything.
Thanks A:
When a company or a government borrows money they turn that liability (the total amount of money that they borrowed on that occasion) into a financial instrument that can be traded - that’s a bond.
I _think_ what spooked him is that normally when stocks go down bonds go up, and when bonds started going down as well as stocks that looked like across the board financial panic. Just a guess though.
Thanks J:
Monday could be ugly. Bonds going down would be bad. With lower priced bonds, we get higher interest rates and weaker dollar. And then the question of who is selling those treasures. Soon enough they will start talking about stagflation and high unemployment. The good news is the DOW is at about the same it was a year ago. Hold on and stop looking unless you are going to do something. Happy Passover!