08/10/2026
AUGUST Treasury Rates Are Relentlessly Climbing โ
Causing Higher Budget Deficits Each Year
By Mike Fuljenz Universal Coin & Bullion
๐ฐ ๐ฐ
Check out our Report here:https://manage.kmail-lists.com/subscriptions/web-view?a=YtAphi&c=01JTKN2PZRXR064WXK9QZ0T9C2&k=4234611055ba2b3ca73e3f2b9b3471d8&se=ksteele143%40yahoo.com&m=01KZ9HVWVWDPGAJRAS706BD5JF&r=01KZ9KWGQGRADDH9KAQH38Y9ZV&fbclid=IwdGRjcATmHsNjbGNrBOYeu3Bkb2YFZXh0bgNhZW0CMTEAc3J0YwZhcHBfaWQMMzUwNjg1NTMxNzI4AAEebRD18BiyOoA5Z2VvbgPrAcVGKrhozzZi8wmrCZAUv1mDPctDkXT69HDekCU_aem_rO5uCrziG-TQwfR_aeeK6A
Interest rates are relentlessly climbing higher all across the Treasury spectrum, from 2-year notes to 30-year bonds. This past Friday, the benchmark 10-year note closed at 4.75%, a new high for 2026, while the 30-year bond (the base rate for most mortgage contracts) closed at 5.27%, its highest level since 2007!
๐ ๐ชโจ
The Federal Reserveโs bigger concern is the rapid rise in shorter-term rates, which form the basis for the Fed Funds rate. This was the main focus of their Federal Open Market Committee (FOMC) meetings, which occur eight times per year, with the most recent meeting occurring July 28-29.
The 2-year Treasury note yield has increased by a full point in the past five months, rising from 3.365% on March 1 to 4.377% in late July, before dipping down to 4.304% on Friday.
The Fed left rates unchanged last week, as I predicted here in a recent column, โI doubt the new Fed chair wants to alienate the President so soon after taking office by raising rates going into election season, so I donโt expect any interest rate increases (or cuts) this weekโ, despite widespread predictions of a rate increase. Three of the 12 voting members of the FOMC wanted to raise rates last week. The new Fed Chairman Kevin Warsh called this debate a good old-fashioned โfamily fight,โ with many pundits now predicting the Fed will be forced to raise rates soon, reflecting the realities of the bond market, which keeps pushing rates higher.
President Trump wants the Fed to cut rates before the election but the best he can hope for is that they will leave rates alone, not increase them going into the election. But what if the 10-year rate tops 5%? The 10-year rate came within a whisker of that level in late October 2024, at 4.997%. Having 10-year rates above 5% would tie the Fedโs hands. They would have to make a move to raise the Fed Funds rate higher.
If the Warsh-led Fed cuts the Fed funds rate now, as President Donald Trump wants them to do, that would fly in the face of the rising 2-year note and the rest of the Treasury bond rates. As of July 31, the national debt is nearing $40 trillion โ itโs now $39.84 trillion โ and likely to surpass $40 trillion by the end of the federal fiscal year on September 30. So, paying out the average 2-year rates of 4.3% and 10-year rates of 4.7% would cost $1.8 trillion in interest payments on the national debt (4.5% of $40 trillion).
Paying $1.8 trillion a year just to service debt amounts to 90% of the $2 trillion annual deficits weโre seeing each year โ and these numbers will keep growing with each yearโs deficit, plus any interest rate increases.
These are among the main reasons why we see gold returning to $5,000 or higher later this year and we are not alone. J.P.Morgan still sees a potential push to $6,000 an ounce for gold by the end of the year and even higher in 2027. In fact, while some major banks have slightly reduced expectations for gold, the consensus from UBS, Commerzbank, Bank of America and Citibank is that gold will reach $5,000 again by the end of the year. Youโve seen me write about buying on the dips, when gold and silver have declined; this is that time. Contact one of our professional representatives today and discuss the ways that you can invest in gold.
For more than 30 years, Universal Coin & Bullion has helped investors across America diversify their portfolios with gold, silver, and rare coins backed by experience, integrity, and trust.
๐ Don't wait for the next financial headline to make your move. Call Universal Coin & Bullion today at (800) 248-2223 and speak with Your "Gold Guy" about building a stronger financial future.
๐ UniversalCoin.com
โ๏ธ (800) 248-2223
๐ช Protect Your Wealth.
๐ Diversify Your Portfolio.
๐ Own Real Assets.
๐ช๐ฐ๐๐บ๐ธโจ๐ฅ See less
