Investors again rushed for the safety of government bonds and dumped stocks on Wednesday, exacerbating the August exodus away from risk assets as traders around the world settled in for a U.S.-China trade war without an end in sight.

The flight to safety sent the yield on the 10-year Treasury note — used as a benchmark for mortgage rates and auto loans — falling to a low of 1.595%, the lowest since autumn 2016. The yield on the 30-year Treasury bond bottomed around 2.12%, near its all-time low reached in 2016. Yields pared some of their declines later in the session, but held steady near multiyear lows.

The 10-year Treasury rate is about 40 basis points below its level one month ago, down more than 35 basis points in August alone and representing a sizable move for the relative stable U.S. bond market. The yield ended July above 2%.

This is a story from last Wednesday so the markets could of changed since then but I read this article and found the charts to be very eye opening. Notice the yields have slowly been going down until just recently when they started to tank probably from the fed rate cute and the China trade war news. Low yields is what Trump needs to increase federal spending, boost the banks and home buying. Short term it's a good strategy for keeping the economy out of recession and helping Trump win the election in 2020 but long term it's bad for the economy because it gets people and businesses used to cheap loans which so they take on more debt than otherwise necessary. It's all good until we have a currency or housing collapse than people really start to feel the pain of having to much debt.

The collapsing interesting rates and trade war with China are all good news for Gold and Bitcoin. Bitcoin is around $11,000 and Gold is $1,500 which is a multi year high. Be interesting to see how Trump deals with these economic problems and I feel like the deep state's best option right now it force the economy into recession to make Trump's policies look like they are failing for next's years elections. We will see though, Trump could pull some aces out of his hat and keep it float through 2020.

Source: https://www.cnbc.com/2019/08/07/us-treasury-bonds-china-sets-the-yuan-below-expectations.html

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