According to Fortune, Donald Trump cares more about lowering the yield on 10-year bonds than the stock market or interest rates. At first glance, that may seem surprising, but let’s break down why this is crucial for Trump’s economic strategy. 10-year bonds are essentially loans that citizens give to the government for a decade, and the “yield” is the interest rate the government pays on those loans.
When bond yields go down, the government’s borrowing costs drop as well. This means Trump can keep spending on various initiatives without piling on more debt. The national debt, which has been rising in the trillions, would otherwise balloon out of control. By lowering bond yields, the government can effectively manage its borrowing without overburdening future generations with even higher debt.
But it’s not just about the government’s finances. Lower bond yields also directly benefit everyday people. They make mortgages and loans cheaper, helping regular folks secure homes and other important financial investments. Sure, rising stock prices might make the wealthy even wealthier, but most regular Americans aren’t stock market players. When bond yields fall, it’s the normal people who feel the benefit, not just the Wall Street elite.
Trump’s focus on bond yields isn’t about a flashy headline or short-term gain. It’s about long-term fiscal management that has a direct impact on people’s lives—especially those who don’t have stocks in their portfolios but still rely on credit for everyday needs.
Source:
https://fortune.com/2025/03/14/10-year-yield-trump-stock-market-interest-rates-bonds/