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REDDIT

Macro trends point to increased stagflation

M
Feb 20, 2025 · 17:10

I've noted that Chinese stocks have gapped up (bullish) while US Treasuries remain at all-time Treasuries remaining at decade lows, this despite signs that Main Street might be overheating. This trend is alarming as it could lead to stagflation here in the U.S. The price of bonds and interest rates have an inverse relationship -- weak Treasury prices equal high rates. We would want to see capital flow back into Treasuries for safety if/when the economy overheats. This would signal that the US remains a trusted economy globally and would provide relief for the consumer at here at home.