Concerned Yet?

[Bassin08]

The US government is bringing back a bond it hasn't issued since 1986 as America's deficit continues to balloon.
After looking at a range of long-dated options, the US Treasury has announced that it will issue a new 20-year bond in the first half of 2020. The decision follows a feedback period, during which the Treasury also considered 50-year and 100-year bonds.
"We seek to finance the government at the least possible cost to taxpayers over time, and we will continue to evaluate other potential new products to meet that goal," Treasury Secretary Steven Mnuchin said in a statement on Thursday evening, the timing of which took investors by surprise.
Why it's happening: While the US Treasury is well-funded through fiscal year 2020, next year "becomes a bit more challenging," Mark Cabana, head of US interest rates strategy at Bank of America, told me.
That's because, in the next fiscal year, the government will need to pay back some of the debt that was issued to finance corporate tax cuts and tax reform in late 2017.
"Treasury needs a new source of financing to meet future deficit needs," Cabana said.
Who's interested: A 20-year US bond will primarily appeal to pension funds or insurance companies that have to manage longer-term liabilities, according to Priya Misra, head of global rates strategy at TD Securities.
It could also help the US government fund a second round of tax cuts or infrastructure spending, she said. More details on the bond will arrive in February, and Misra expects it will first be issued in May.
Know this stat: The US deficit surpassed $1 trillion in 2019, the first time the country has crossed that threshold in a calendar year since 2012.

[NitroZ7]

I woke up at 3:00 AM this morning and watched some YouTube. First thing that pops up is a guy explaining Michael Burry’s prediction that we have another financial crisis in the making. He said that pension funds, insurance companies and banks have been loading back up on Mortgage Back Securities for yield and that this is what triggered some issues in the Repo market since some banks fidnt want to take these as collateral. I have no idea of if this is true but I almost feel like I want the plunge over with already..