Center for Financial Stability

Johns Hopkins economist Steve Hanke warned that President Trump has created a "deadly cocktail" for Treasuries, resulting in a bond selloff that is pushing yields past informal thresholds. Hanke ranks monetary forces as the primary driver, noting accelerated money supply growth (Divisia M4) which fuels inflation expectations. He expects the 10-year yield could climb another 50 basis points and advises being "very bearish" on bonds.