Maggie Lake Talking Markets
Episode 52: What's Bugging the Bond Market? With Noelle Acheson
May 14, 2025
Noelle Acheson, author of "Crypto Is Macro Now," dives deep into the complexities of the bond market and its disconnect from soft CPI data. She discusses the implications of Treasury yields, the potential market impact of a tariff pause, and what Coinbase joining the S&P 500 could mean. Acheson also highlights Ethereum's surprising upturn and the dollar's decline, suggesting it may boost crypto and risk assets. Her insights bridge traditional finance and the evolving world of digital currencies.
33:55
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Quick takeaways
- Rising Treasury yields reflect market skepticism regarding inflation data and international tariff impacts on economic stability.
- The declining U.S. dollar alongside increasing yields raises concerns about foreign investment withdrawal and broader market dynamics.
Deep dives
Current Bond Market Dynamics
The bond market is currently experiencing upward pressure on yields, particularly the 10-year yield hovering around 4.5%. This increase is attributed to several factors, including a lack of genuine softening in inflation and the influence of tariffs, which have yet to fully impact prices. Additionally, there is a noticeable return of risk premiums as uncertainty remains regarding U.S. tariffs and their broader economic effects. Foreign investor withdrawal from U.S. assets also signals a growing concern that could complicate demand for Treasuries, highlighting a general exit from U.S. bonds amid evolving market conditions.
