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Amid soaring US bond yields, a section of stocks and gold investors across the world is convinced that the Trump administration can't afford this for long, as it is heightening the American debt crisis. They get an extra booster dose when Chris Wood, Head of Equity Research at Jefferies, started to predict at various news platforms that the evidence of the US bond yields suppression, as it has crossed $40 trillion in August 2026, is available and sooner or later the US Treasury Department would either suppress the US Treasury yields or in an extreme condition, the Donald Trump administration may fix the US bond yields, as the Japanese did in the year 2016. Those stocks and gold investors who believe in this school of thought may face a major disappointment, as the Trump administration has two more options. According to experts, the US President Donald Trump is facing a debt crisis due to the soaring US bond yields. The US is facing this crisis because it hasn't found a new buyer for its debt. They said that those who believe in US bond-yield suppression may be disappointed, as the Trump administration has other options available. The Trump administration just needs to find a new buyer for its debt, experts said. “I completely agree with this school of thought that rising bond yields, especially the US 10-year bond yield, are throwing tantrums at the Trump administration. However, one must remember that other options are available. On exercising those options, the Trump administration may surprise and disappoint stocks and gold investors, because it would further put these assets under pressure,” said Avinash Gorakshkar, Founder of Avinash Mentor Research. Gorakshkar said that the Trump administration has various other options. The only thing that the White House is looking for is finding a buyer for its debt. The options other than the suppression of the US bond yields, Ryan Kirkley, Co-founder and CEO of Global Settlement Network, pointed towards these two options and said, "I think the first thing to look at is where demand for U.S. debt is actually coming from. If the US wants to broaden its buyer base, digital dollars and tokenised US Treasuries can help. The infrastructure is already moving in that direction. It's important to make sure there is enough liquidity and settlement capacity around those assets as participation grows.” On two options with which the Trump administration may surprise the world and may disappoint the stocks and gold investors, Ryan Kirkley said, “Stablecoins are already creating demand for short-dated Treasuries because issuers need liquid reserve assets, and as that market grows, that pool of Treasury demand grows with it.” Highlighting the second option the Trump administration may exercise, Ryan Kirkley of Global Settlement Network said, “Bond tokenisation can also help expand access to U.S. government debt because it makes it easier for investors in different markets to hold and settle those assets through digital infrastructure, and that gives the Treasury market another distribution channel.” On why the above-mentioned two steps may disappoint stocks and gold investors, Anuj Gupta, a SEBI-registered market expert, said, “Suppression of the US bond yields would trigger profit-baking in the US bond market. This would weaken the US Dollar (USD), leading to an uptrend in the Indian National Rupee (INR). This uptrend is good news for FIIs and FPIs, as a stronger INR yields higher returns for foreign investors, who invest in USD terms. This is a good sign for gold also, because money pumped into the bond market is expected to move into the equities, gold and other assets.” In the case of US bond tokenisation or finding a new buyer, such as Stablecoins, for US debt, this would strengthen the US bond market and establish US bonds as an asset in investors' portfolios across the globe — a development which would trigger further downside in the equities and gold assets," said Anuj Gupta. The US bond yields are at an alarming level, as the US 10-year bond yield has touched the highest levels since 2002. Currently, the US 10-year bond yield is around 5.25. The US 30-year bond yield is at 5.622. The COMEX gold rate today is in the $4,200 to $4,600 per ounce range, whereas the MCX gold rate today is below ₹1.50 lakh. Experts believe the MCX gold rate today is in the ₹1.40 lakh to ₹1.55 lakh range. Disclaimer: This story is for educational and informational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified financial experts before making any investment decisions. Asit Manohar has nearly two decades of experience in the mainstream media. In this period, he has served esteemed media organisations like NDTV Profit, The Economic Times, and Zee Business. He has been working at LiveMint Digital since April 2021. During these two decades of journey in mainstream media, Asit has mainly covered external affairs, markets and personal finance. However, his earliest beats include railways, SME, MSME, and politics (Congress beat). Some of his features on political, economic, and foreign policy are documented in the parliamentary records. <br><br> While pursuing his MA (Mass Communication, Session 2004-06), Asit began his media career as a stringer at All India Radio in Varanasi. At AIR Varanasi, Asit worked with the Gyanvani, Yuvvani and Vividh Bharti teams. After working for nearly one year at AIR Varanasi, he shifted to print journalism and started working as a stringer for the HT Media Ltd, Varanasi. At HT Media Ltd in Varanasi, he covered the BHU beat. <br><br> Asit has also worked with some brokerage houses. He has worked with Religare Broking and India Infoline, where he assisted the research team in developing and executing trade strategies for intraday cash, F&O, and commodities. <br><br> Asit is a Gold Medalist in MA (Mass Communication) from BHU, Varanasi. He did his BSc. (Hons) in Mathematics from Magadh University, Bodh Gaya. Asit was a National Talent Scholarship holder during his senior secondary studies (1988-91). Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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