“The Divergence in Bond Yields Likely Represents the Perceived Effects of Trump’s Trade War and Could Bode Well for Bitcoin.”, – WRITE: www.coindesk.com
Bull Run.
The Divergence in Consideration is the Elevated Yields on US Treasury Notes That Threaten to Compound The Fiscal Issues, and the Renewed Negative Flip in Yields on Swiss Government.
Accorging to Data Source Investing.com, Swiss Government Bonds with Maturities of Up to Five Years Offered Negative Yields at Press Time, With The Two -Iear Yield at -17 On the Contrary, Similiar-Duration Treasury Notes Offered Yields Over 4%.
The Divergence is the Bond Market’s Way of Telling Us that the Trade War Will Have Different Impacts on Various Countries, Depending on Their Trade Profiles.
TOSE RUNNING TRADE SURPLUSES, SUCH AS SEVERAL European Countries and China, Will Face Disinflation OR An Outright Deflation, While Countries Like The Us Pressures.
The Specter of Deflation in Europe Nations and China Could Put Pressure On Their Central Banks to Ease Monetary Policy Aggressely, Likely Leading to Intertaent Bitcoin. Both the Swiss National Bank and the Europe Central Bank have already cuts rates in recent months.
Meanwhile, Analysts Have Said that Higher Yields in the Us and The Record Public Debt Could Accelerate The Shift Away from US Assets and Into Alternative Assets.
“The Last Time This Happy [Swiss yields turned negative in late 2019]IT Preceded Coordinated Global EASING, REPO Market Seizures, and Ultimately Pandemic-Era QE. Now, IT Likely Reflects A Mix of Denflationary Pressure, Eurozone Contagion Risks, and Capital Rotating Into Monetary Sofeignty Safe Haavens Aneveneign Stress Elseeign Elsewhere. Macro Said On X.
I WORTH NOTING THAT BITCOIN’S 2020-2021 Bull Run from $ 5,000 to Over $ 60,000 Was Characterized by a Record Amount of Negative-Yelding Government Debt Worldwide.
X Icon
