In a compelling report dated May 27th, Bank of America’s Chief Strategy Officer, Michael Hartnett, illuminated the staggering implications of government spending. He noted that to exhaust the US government’s $7.1 trillion fiscal expenditure over the past year, one would need to spend $100 every second for a staggering 2,248 years. This observation comes amid discussions on the recently proposed “Big Beautiful Bill,” which Hartnett fears could disrupt fiscal balance.
Last week, the cryptocurrency market witnessed an impressive inflow of $2.3 billion, propelling it to unprecedented levels, while US tech stocks faced an outflow of $6.8 billion. Additionally, a noteworthy $9.8 billion flowed into high-yield bonds over the last month, marking a peak since November 2023. Hartnett poignantly warned that should US Treasury yields surpass 5%, it could precipitate a crisis for US equities, given the perilous state of a financialized economy.
He emphasized that if the 5-year US Treasury yield crosses 3.25%, the US’s interest payments, currently at $1.2 trillion, would escalate drastically. Conversely, sustaining yields below this threshold is essential to stabilize the country’s mounting debt obligations.
Source: https://en.coinotag.com/breakingnews/bank-of-america-strategist-warns-rising-us-treasury-yields-could-spell-disaster-for-bitcoin-and-the-economy/