Jim Bianco: If the Fed is no longer going to be vigilant about fighting inflation, then US Treasuries are a sell.

The probability of another rate hike is deflating, especially for a November hike (green).

Is this why yields are shooting higher? If the Fed is no longer going to be vigilant about fighting inflation, then US Treasuries are a sell. pic.twitter.com/bQianKo0Uh

— Jim Bianco (@biancoresearch) September 27, 2023

Many do not understand the implications of US debt service costs rising.

For nearly 20 years, it was effectively free for the US to issue debt as debt service costs were ~1.5%.

Now, debt service costs have doubled to 3% and will rise toward 5% as rates skyrocket.

To put this… pic.twitter.com/H2aMHMaT1v

— The Kobeissi Letter (@KobeissiLetter) September 27, 2023

To compare the scale of the problems, if the 2008 GFC was Lake Ontario, the crisis that's coming is the Pacific Ocean. The only way the Fed can postpone the crisis is by replacing it with something even worse. The only unknown is how long the Fed waits before pulling the trigger.

— Peter Schiff (@PeterSchiff) September 27, 2023