This week, the U.S. government sold a lot of its bonds (kind of like IOUs where people lend money to the government and get paid back later). At first, it seemed like people still wanted to buy them, which was good news for President Trump. But on Friday, things got worse again. Investors started selling U.S. bonds fast, especially in Asia. That’s a sign people are worried, and it made interest rates on these bonds rise faster than they have in nearly 25 years!

This isn’t just about the stock market going up or down. U.S. government bonds are super important for the whole world’s economy. Countries like China buy them because they’re usually safe. People buy them when they’re nervous about the stock market. And the U.S. government uses them—along with taxes—to pay its bills.

Usually, when the stock market is doing badly, people buy more bonds. But now, with Trump putting big taxes (called tariffs) on stuff from other countries, things are getting weird. Other countries are also putting tariffs on U.S. stuff. That makes everything more expensive and makes people nervous about the future.

Because of the tariffs, investors are worried that prices will go up (that’s called inflation). And when that happens, bonds become less valuable. So, people want to sell their bonds now, while they still can. Some are doing it because they need cash, others to protect their own money systems, and some might even be trying to pressure Trump during trade talks.

Also, if countries sell less to the U.S. because of the tariffs, they’ll earn fewer U.S. dollars—and that means they might not be able to buy as many U.S. bonds later. That’s bad news.

So even though Trump may think everything is under control, there’s real trouble here. The smart thing for him to do would be to stop acting like he knows everything and be more careful with trade and money decisions.

Linkedin
Disclaimer

Views expressed above are the author's own.

END OF ARTICLE