With (1) the removal of many internal watchdogs at governmental agencies, and (2) last week's demonstration that the Trump White House is willing and able to manipulate the US capital markets, the nascent premium for US Treasury securities will probably get wider. The absolute trust that investors worldwide have placed in US markets has been shaken, so those investors will demand a premium because of the additional risk from the grift which is now taking over in Washington. Of course, this additional premium will only make it more expensive for the US Government to borrow, but that burden falls more and more to the lower economic classes in this country.
As I've written before, until 2016 political risk was not a significant factor in US securities markets. We are now starting to see the cost of that risk, and it ain't negligible...
One interesting measure of the economy and crony capitalism at once: As of April 21 2025 TSLA stick is down approximately $224 per share or 47.6%, 2025 year-to-date. Tomorrow Leon Skum's company gets to announce their most recent quarterly earnings, and sales volume. I'll wager that the brand damage brought on by DOGE and the Muskrats will cause the TSLA board to...um...oh, provide some platitudes about the auto business and technology and how the future is looking up, and the sky is blue, and the company is geared for growth. Not a word will be uttered about the autistic guy at the company helm, who is giggling while steering the ship toward the rocks...