As U.S. Treasury yields spike alongside falling equities and a weakening dollar, investor Chamath Palihapitiya puts the blame squarely on the media and the political establishment.
What Happened: On Wednesday, in a post on X, Palihapitiya, while talking about the rising yields and renewed volatility in the bond markets amid falling equities, said, “The bond market understands what has transpired and it doesn’t like it.”
“Rates are rising, and may now move rapidly,” he said, and while this comes in the lead up to the passing of President Donald Trump’s “One Big, Beautiful Bill,” which offers extensive tax breaks in the face of mounting fiscal deficits, Chamath blames this on journalists and politicians.
He says the recent actions to “sideline DOGE,” or the Department of Government Efficiency, were short-sighted and politically motivated, and argues that those behind the push are now facing an “uncomfortable new reality” as borrowing costs rise.