How I Buy Bonds In A Time Of Growing Debts And Government Market Distortions

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Today I want to tell you how I buy Treasury bonds in this day and age, with the troubling news headlines, because I do own some.

One of the stories this week is that the largest sovereign wealth fund in the world has decided to stop buying US Treasury bonds. Over the past few weeks we have seen, as I wrote last week, a seeming disconnect between the US Treasury and the Federal Reserve when Treasury Secretary Scott Bessent tried to move long-term Treasury Bond yields down, due to growing debts and lack of foreign demand, with several statements in which he said the US government would just start buying them itself.

And then the Federal Reserve Chairman suggested he might need to raise rates to combat inflation, which has failed to go down and only gotten worse with the Iran war. Now the odds of a September rate hike according to the Fed Fund futures is 59.4%.

Meanwhile, on Friday, Donald Trump put up this statement in which he demanded that the Fed actually lower interest rates.