Weak demand for Treasury bonds indicates that the market is punishing the government for high deficit spending, leading to rising interest rates and a compounding debt problem.

“So what we saw on Wednesday was a really weak demand signal for treasuries on this, you know, modest treasury auction. Selling 16 billion of bonds is not a lot. There's hundreds of billions being sold each quarter. And so this was not a big number, but there was no buyer.”

Stability in the bond market is necessary for the equity rally to continue.

“So, what I think you need to really see is you need to see the stability in the bond market in order for this rally to pick up that next leg forward.”

The 40-year bond bull market has ended, and debt markets are no longer viewed as a reliable reserve asset.

“Everything is built on that. Um that is the beginning of the end. This is reset. And we also used to use an analogy 40 years escalator because it was a bull market that built up since the 1980s”