Financial Markets Signal Concerns as US Treasury Yields Plummet and Oil Futures Tumble
In a critical turn of events, the US financial markets are experiencing significant fluctuations, raising serious concerns about a 2024 economic crisis.
Over the past five trading days, the 10-year US Treasury yields have plummeted by a staggering 24 basis points.
When bond yields are falling, it means that bond prices are rising driven by market demand for safe-haven investment returns.
This means that a sudden, high demand for Treasury Bonds indicates high expectations for serious economic and financial challenges ahead.
This rapid decline is unusual, especially during times of economic stability when such yields typically move by 5 or 10 basis points over weeks or longer periods.
The sudden and substantial drop in Treasury yields is seen as a warning sign for the financial system.
Historically, such sharp movements in bond yields have been accurately indicative of impending economic recessions.
In this case, the 24-basis point decrease within just a few days is fueling predictions of an economically volatile time ahead in 2024.
Adding to the unease is the decline in Oil Futures, which have tumbled by a substantial $21.31 per barrel (22.75%) in less than 90 days.
The market interprets steeply falling oil prices as a signal of future decreased oil demand, suggesting an economic contraction on near horizon.
As oil serves as a crucial indicator of economic health, the significant drop in futures raises concerns about the overall state of the economy.
While financial markets can be volatile, the combination of a sharp decline in Treasury yields and a substantial drop in oil prices within these relatively short time-frames are not boding well for the financial system landscape ahead.
Add record high interest rate payments on debt, the US national debt level about to cross $34 trillion, and the US Debt to GDP ratio now at 122% and rising, and the perfect storm has now come clearly into view.
The financial Super Bubble will pop.
The collapse of the fiat currency debt system is mathematically certain. The challenge is knowing when we will hit the tipping point.
