...an indication that these fund managers are anticipating higher interest rates ahead for US bonds?
...that is now validated by the Moody's credit downgrade, a rising US risk premium must mean that investors would demand a higher yield to stay invested in US bonds/treasuries for longer duration.
...a large part of the Miran economic approach is seeking to impose zero coupon long duration bond swaps with holders of US Treasuries. This may have led to fears in anticipation of this rollout that have caused market participants to reduce their holdings.
...Trump's recently announced unilateral tariff is a clear signal to the investing world at large that Trump 2.0 has no compunction to impose onto other nations at their expense what it deems to be entirely for the self-interests of America ( a form of neo-colonialism) - this being the essence of its America First policy. Do Unto Others What is Beneficial Solely for Yourself.
...forced into a corner by the bond market, such a zero coupon bond swap places the likes of Japan and UK (the 1st and 2nd biggest holder of US Treasuries) at the mercy of the US administration for which there is little that they can do.
...and if they do so, I think that would trigger the end of whatever faith left in US long term assets including the US dollar's eventual demise as the world's reserve currency.
...bold and hairy audacious game changing monetary policies can have enormous consequences well beyond immediate perceived gains.
