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The Iranians have Trump right where they want him and suggest he seek ‘a dignified exit’

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Jim Edwards.

The bond market is currently pricing risk correctly, according to Johns Hopkins economist Steve Hanke—and what it’s pricing in is ugly.

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Why there are always fewer than 100 emails in Siemens CEO Roland Busch’s inbox. Hanke said, “the bond vigilantes have come out of hibernation” in reference to the investors who have served as the scourge of administrations for decades, selling government debt en masse to punish what they see as reckless fiscal or monetary policy, ultimately driving yields higher until policymakers change course. Bessent has said he wants the 10-year yield to carry a “3 handle”—meaning below 4%—and multiple reports describe a widely understood marker around 4.5% on the 10-year and 5% on the 30-year as his upper red lines. Fed chairman Kevin Warsh has declined to give the market “forward guidance” and investors have responded to that uncertainty by selling off U.S. bonds.

Read full article at Fortune Technology →

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