Actually, I’m pretty sure it’s the inverse in this instance. There is a lack of faith in the US to repay its debts, so they have to increase the rates to attract buyers.
Typically, in bad times rates go down as people are clamoring for stable/risk free places to store cash.
So basically, even though things aren’t looking good economy wise, people are still avoiding bonds and so the government has to jack up rates to move bonds. This is tied to some of the crazy moves Trump/Republicans have been making that almost destroyed the US bond market.
Actually, I’m pretty sure it’s the inverse in this instance. There is a lack of faith in the US to repay its debts, so they have to increase the rates to attract buyers.
Typically, in bad times rates go down as people are clamoring for stable/risk free places to store cash.
So basically, even though things aren’t looking good economy wise, people are still avoiding bonds and so the government has to jack up rates to move bonds. This is tied to some of the crazy moves Trump/Republicans have been making that almost destroyed the US bond market.