Tracking 10y bond yield and Fed assets

I just thought that the Trump admin may have taken more aggressive steps to lower the yield but it's still blowing out.

So there's little point watching it.
 
I always wonder when everyone one else will figure this out.
The Bond "market" is still trying to be relevent in a world were it's no longer relevent. Old habits die hard.

Where do bond investors put their savings then?
 
Where do bond investors put their savings then?

As already proposed by other people, the central bank can just create an interest paying term savings account (which in all reality is what's happening anyway). Or literally anywhere else, e.g stock market, ETF, direct investment etc...

Too many legacy/redundant things lingering arround in the financial system and it's causing unnecessary complexity and issues.

Government bonds were only relevant under the gold standard. Creating time duration before you could converter your paper currency for gold in order to prevent a rapid draining of the gold reserves.
 
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As already proposed by other people, the central bank can just create an interest paying term savings account (which in all reality is what's happening anyway).

And that would also do away with the endless debates around tax "revenues", debt ceilings, budget surpluses/ deficits etc.

It would help usher in a new paradigm.
 
No change as of yet.

Screenshot 2025-06-27 at 8.29.58 am.png

This link has charts going back to 2005 and also shows the make-up of the assets on the balance sheet. The Fed has trimmed its balance sheet by about 25% since the highs of mid-2022 by letting their holdings of Treasury Securities mature without reinvesting ie buying more. The level of other assets hasn't changed much at all.

https://www.americanactionforum.org/insight/tracker-the-federal-reserves-balance-sheet/

Screenshot 2025-06-29 at 9.05.17 am.png
 
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