2 days ago
Trump’s Debt Crisis Options Could Pressure Stocks and Gold
The United States is paying more to borrow money because its bond yields are rising.
This is adding pressure to the country’s debt situation.
Some investors think the government might force bond yields lower.
Other experts say the government could instead find new buyers for its debt.
Stablecoins may buy short-term US government bonds as reserves.
Digital versions of bonds could also make them easier for investors around the world to purchase.
If these steps make US bonds more attractive, money could move away from stocks and gold.
That could disappoint investors who expect bond-yield suppression to benefit those assets.
The article says US bond yields and gold prices are currently at high levels.
Experts say soaring US bond yields are intensifying pressure from America’s debt crisis and limited demand for its debt.
Some investors expect the Trump administration to suppress or fix US Treasury yields, potentially following Japan’s 2016 approach.
Ryan Kirkley identified stablecoins and tokenized US Treasuries as alternative ways to create new demand for US debt.
Analyst Anuj Gupta said broader Treasury demand could strengthen bonds while putting pressure on equities and gold.
The article reports the US 10-year yield near 5.25, the 30-year yield at 5.622, and gold trading within stated elevated ranges.
- Who
- The Donald Trump administration, investors, and financial experts including Chris Wood, Avinash Gorakshkar, Ryan Kirkley, and Anuj Gupta.
- What
- Experts discussed two alternatives to suppressing US bond yields: using stablecoins to create Treasury demand and tokenizing US bonds.
- Where
- The discussion concerns the United States and global financial markets, including India’s equity and currency markets.
- When
- The article cites August 2026 for US debt surpassing $40 trillion and reports current bond-yield and gold-price levels.
- Why
- Soaring yields and the lack of a new buyer for US debt are increasing pressure on the US debt position.
Yield Suppression
New Treasury Demand
How to address the debt pressure
Yield Suppression
Some investors and Chris Wood expect the US Treasury Department or Trump administration to suppress or fix US bond yields, possibly resembling Japan’s 2016 approach.
New Treasury Demand
Ryan Kirkley said the administration could broaden the buyer base through stablecoins and tokenized US Treasuries instead of suppressing yields.
Likely effect on stocks and gold
Yield Suppression
Anuj Gupta said yield suppression could weaken the US dollar and encourage money to move into equities, gold, and other assets.
New Treasury Demand
Gupta said stablecoin-based demand or bond tokenization could strengthen US bonds and put further pressure on equities and gold.
Key facts
- US debt
- The article says US debt crossed $40 trillion in August 2026.
- US 10-year yield
- Approximately 5.25, described as the highest level since 2002.
- US 30-year yield
- 5.622, according to the article.
- First proposed option
- Stablecoins could create demand for short-dated US Treasuries by holding them as liquid reserve assets.
- Second proposed option
- Tokenized bonds could broaden global access to and settlement of US government debt.
- COMEX gold
- Reported in a range of $4,200 to $4,600 per ounce.
- MCX gold
- Reported below ₹1.50 lakh, with experts cited as expecting a range of ₹1.40 lakh to ₹1.55 lakh.
Quotes
Ryan Kirkley
Co-founder and CEO of Global Settlement Network
“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.”
livemint.com
“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.”
livemint.com
Avinash Gorakshkar
Founder of Avinash Mentor Research
“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.”
livemint.com
Sources
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