The Mark Moss Show Bond Market Is Blowing Up, But No One’s Telling You Why! | Nik Bhatia
May 22, 2025
Nik Bhatia, founder of The Bitcoin Layer and author of Layered Money, brings deep insights into the chaos of today's bond market. He discusses the rising volatility, the factors driving market upheaval, and the frequency of rare financial events. Bhatia analyzes the implications of the BRICS coalition and U.S.-China tensions on global trade. He delves into the precarious state of weak currencies like those in Lebanon and Turkey and explains how Bitcoin might reshape financial dynamics amidst these challenges.
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Frequent Extreme Volatility Explained
- Seven sigma volatility events are happening every few years, not every thousand years as expected.
- This frequency shows that the credit system is based on fragile, thin air leverage, causing extreme market volatility.
Global Trade Reordering Underway
- The end of globalization means reordering global trade and finance.
- The trade wars and tariffs are part of the new regime emerging after U.S.-China tensions.
Focused Selling in Treasury Market
- Recent selling in 10+ year U.S. treasuries is very focused and differs from typical market moves.
- The move is driven by real yield increases, a steepening yield curve, and collapsing swap spreads, indicating localized selling.
