The Federal Reserve is highly likely to cut interest rates on September 17, but the market is strange: the 30-year U.S. Treasury yield has surged to 5%.
In theory, a rate cut should lower interest rates and then bond prices should rise, but the current situation is the opposite. The reason is simple: Country M issued 200 billion dollars worth of bonds in 5 weeks, and the market is unwilling to take them on, forcing interest rates to rise. In other words, lowering interest rates won't save the bond market. I think: If inflation remains around 3% and stays at this level for the next ten years, $100 will only be able to buy about $75 worth of goods (which is equivalent to a further drop of 25%). U.S. Treasury yields, inflation, and fiscal deficits are all intertwined, making traditional finance increasingly difficult to navigate. Gold has been rising these past few weeks, and Bitcoin should also benefit as people look for hard assets. So don't just focus on interest rate cuts as a positive sign; the current situation feels more like traditional finance is about to collapse. Sooner or later, it will move towards the crypto world. #非农就业数据来袭##打榜优质内容#
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Sfmo
· 09-05 06:44
When I first started trading crypto, I was on a mission: to find the “perfect strategy.” I tried everything — scalping, swing trading, momentum plays, trend following, and even copy-trading. Every week, it felt like I was starting over. One day I’d be up 5%, the next day down 10%, and my emotions were constantly swinging between excitement and frustration.
The Federal Reserve is highly likely to cut interest rates on September 17, but the market is strange: the 30-year U.S. Treasury yield has surged to 5%.
In theory, a rate cut should lower interest rates and then bond prices should rise, but the current situation is the opposite.
The reason is simple: Country M issued 200 billion dollars worth of bonds in 5 weeks, and the market is unwilling to take them on, forcing interest rates to rise. In other words, lowering interest rates won't save the bond market.
I think:
If inflation remains around 3% and stays at this level for the next ten years, $100 will only be able to buy about $75 worth of goods (which is equivalent to a further drop of 25%).
U.S. Treasury yields, inflation, and fiscal deficits are all intertwined, making traditional finance increasingly difficult to navigate.
Gold has been rising these past few weeks, and Bitcoin should also benefit as people look for hard assets.
So don't just focus on interest rate cuts as a positive sign; the current situation feels more like traditional finance is about to collapse. Sooner or later, it will move towards the crypto world.
#非农就业数据来袭# #打榜优质内容#