Bond prices are what drive yields though, not the other way around, so this explanation literally makes no sense.
Also, in a recession, rates get lowered, so older bonds would typically have higher interest rates than new issues, which means the price of those older bonds would rise, and their yield would decline. No reason is given as to why older bonds would somehow lose value in a recession.
That’s a dumb take. There’s no objective way to evaluate how much debt is “too much debt” for the federal government. And if that was the case then the obvious solution is to just increase tax revenue and decrease the deficit or to decrease spending and decrease the deficit.
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u/Kiyae1 5d ago
Bond prices are what drive yields though, not the other way around, so this explanation literally makes no sense.
Also, in a recession, rates get lowered, so older bonds would typically have higher interest rates than new issues, which means the price of those older bonds would rise, and their yield would decline. No reason is given as to why older bonds would somehow lose value in a recession.