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<blockquote data-quote="CaptainChardonnay" data-source="post: 1272449" data-attributes="member: 3523">Stocks are down 2.8% after a 10 year bull run and all of a sudden everyone's a yield curve expert lol. Do you understand why yields are inverting? Its because a massive number of people are lining up around the block to buy long term US bonds and the supply does not equal the demand pushing the price up and thus the interest rate down. This basically means that the rate does not need to be high because higher rates are meant to entice buyers, if there are many buyers then the rate drops. Do massive amounts of people trying to get US bonds sound like the US economy is weak or in trouble?Right now the US economy is incredibly strong that everyone wants to purchase USD because it has the highest predicted rate of ROI. The reason Trump wants the FED to drop interest rates is to weaken the dollar making the US more competitive against currency manipulators such as China and Europe. A strong dollar means less exports and more imports.</blockquote>

[QUOTE="CaptainChardonnay, post: 1272449, member: 3523"] Stocks are down 2.8% after a 10 year bull run and all of a sudden everyone's a yield curve expert lol. Do you understand why yields are inverting? Its because a massive number of people are lining up around the block to buy long term US bonds and the supply does not equal the demand pushing the price up and thus the interest rate down. This basically means that the rate does not need to be high because higher rates are meant to entice buyers, if there are many buyers then the rate drops. Do massive amounts of people trying to get US bonds sound like the US economy is weak or in trouble? Right now the US economy is incredibly strong that everyone wants to purchase USD because it has the highest predicted rate of ROI. The reason Trump wants the FED to drop interest rates is to weaken the dollar making the US more competitive against currency manipulators such as China and Europe. A strong dollar means less exports and more imports. [/QUOTE]

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