This Is What A Catastrophic Bond Crisis Looks Like – All Of A Sudden, U.S. Treasury Bonds Are Starting To Trade Like Memecoins

U.S. Treasury bonds are supposed to be among the most stable financial instruments in the entire global financial system. When they begin to trade like memecoins, that is a very clear indication that the next major financial crisis has arrived. U.S. Treasury Secretary Scott Bessent insisted that he would be able to keep bond yields under control. Obviously that did not happen. Now we have a gigantic mess on our hands, and it is going to affect every man, woman and child in this country.

When bond yields soar, so do mortgage rates.

The national average for a 30 year fixed mortgage has risen to a whopping 7.54 percent.

Do you understand what this is going to do to the housing market?

Good luck if you want to buy a home.

Good luck if you want to sell a home.

And if you have an adjustable rate mortgage, you should be bracing for a lot of pain.

Credit card rates and auto loan rates are going to go up too.

The era of “easy borrow, easy spend” is coming to a crashing halt.

This will directly impact all of us.

Needless to say, it is going to be a lot more expensive for the federal government to borrow money too.

We are already spending way over a trillions dollars a year just on interest on the national debt, and so there is no way that we can afford for bond yields to spike.

But it is happening anyway.

Banks and financial institutions all over the nation are holding gobs and gobs of U.S. Treasuries.

They were supposed to be extremely safe investments.

But when bond yields soar to crazy levels, bond prices crash.

As a result, banks and financial institutions from coast to coast now have balance sheets that look like horror movies.

Is your bank at risk of failing?

You might want to look into that.

The stage is also being set for a derivatives meltdown of epic proportions.

If bond yields continue to skyrocket, we are going to see things happen in the derivatives marketplace that we have never seen before.

I am talking about the type of scenario where analysts are using words like “nuclear” and “apocalypse” to describe what is occurring.

Are you starting to understand what is at stake?

We desperately, desperately need bond yields to stop rising.

But that isn’t likely to happen, is it?

According to the Wall Street Journal, 10 year U.S. Treasures and 30 year U.S. Treasuries both rose to “their highest levels since 2002” yesterday…

Today is the final day of a quarter that’s been marked by a relentless selloff in government bonds.

The rout has driven U.S. Treasury yields—which move inversely to prices—to multidecade highs. Both the 10- and 30-year Treasury yields settled yesterday at their highest levels since 2002.

In 2002, the federal government was 6 trillion dollars in debt.

Today, the federal government is 40 trillion dollars in debt.

Big difference.

Today, things got even worse.

Just a little while ago, the yield on 10 year U.S. Treasuries hit 5.302 percent…

To most Americans, this means absolutely nothing, because they don’t understand all of the stuff that I just shared with you above.

Of course it isn’t just 10 year U.S. Treasuries that have begun to trade like memecoins.

The charts for 20 year U.S. Treasuries and 30 year U.S. Treasuries look like they were pulled out of a video game…

This is not supposed to happen.

Ever.

The really bad news is that bond yields have been spiking all over the world.

Today was no different…

Many people see green and they think that must be a good sign.

But as those bond yields go up, bond prices are collapsing.

In France, the yield on 10 year bonds just rose to the highest level since 2008…

France’s messy politics are spooking the bond markets. On September 29th yields on ten-year bonds rose to 4.8%, their highest level since 2008. The surge in borrowing costs has pushed the spread between French ten-year bonds and German Bunds up by 44 basis points in September, to 122 points—the highest level for 14 years. France now pays more to borrow than Greece and Italy, once the euro zone’s most worrisome members. It is increasingly looking like the currency area’s biggest problem, and things could get worse.

Italy is also becoming an absolutely enormous problem.

Simultaneously, Europe is on the verge of a major financial meltdown, Japan is on the verge of a major financial meltdown, and the U.S. is on the verge of a major financial meltdown.

Which area of the world will spiral out of control first?

As borrowing costs rise and the global energy crisis intensifies, we are going to want to watch for signs that economic activity is slowing down.

For example, a lot of trucking companies in the U.S. are starting to file for bankruptcy…

More than a dozen American trucking companies have filed for bankruptcy in the past month, according to an industry news report.

Some 16 firms, accounting for more than 250 jobs, have filed for Chapter 7 or Chapter 11 proceedings, FreightWaves reported earlier this month.

Diesel prices, the lifeblood of the trucking industry, hit a record average of $6.53 a gallon on September 22 amid the impact of President Donald Trump’s war with Iran. Diesel has increased $2.76 over the past year, according to motor club AAA.

The performance of the trucking industry often tells us where the economy as a whole is headed.

Without a doubt, the outlook for the months ahead is not promising at all.

We are facing a global energy crisis, a global fertilizer crisis, a global food crisis, a Super El Niño and World War III all at the same time.

Meanwhile, we continue to get hammered by one major natural disaster after another.

There are so many elements of “the perfect storm” that we are currently experiencing, and this storm is only going to get more intense as we move forward.

Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.

About the Author: Michael Snyder’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com.  He has also written nine other books that are available on Amazon.com including “Chaos”, “End Times”, “7 Year Apocalypse”, “Lost Prophecies Of The Future Of America”, “The Beginning Of The End”, and “Living A Life That Really Matters”.  When you purchase any of Michael’s books you help to support the work that he is doing.  You can also get his articles by email as soon as he publishes them by subscribing to his Substack newsletter.  Michael has published thousands of articles on The Economic Collapse Blog, End Of The American Dream and The Most Important News, and he always freely and happily allows others to republish those articles on their own websites.  These are such troubled times, and people need hope.  John 3:16 tells us about the hope that God has given us through Jesus Christ: “For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life.”  If you have not already done so, we strongly urge you to invite Jesus Christ to be your Lord and Savior today.

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