@[email protected] has moved on Nostr: Its all about the yield on Govt. debt. Yields are inversely proportional to price - ...

Its all about the yield on Govt. debt. Yields are inversely proportional to price - the higher the price of the public debt instrument the lower the effect yield (interest payments)... so when bond traders lose confidence in the Govt.s ability to control inflation (which if high reduces the value of there loans as assets), then the price of bonds drops, driving up the yield paid by Govt.s when issuing new debt... and thereby squeezing the public finances....