Wall Street: El-Erian: "What happens in the US bond market does not stay in the US."
The capital market expert talks about the consequences of rising yields for Europe and Japan and why market interventions will not be successful in the long term.
US Treasury interventions in the markets have been observed, sparking concerns of a potential power struggle between investors and the US government. According to Mohamed El-Erian, this move is part of a larger trend of the Trump administration's willingness to intervene in the economy. The recent interventions aim to lower mortgage rates, which have become a focal point ahead of the November Congressional elections.
El-Erian identifies four possible options for the US government, including stronger intervention, a pact with the US Federal Reserve, or adopting Japan's yield curve control model.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
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