Bond Market On Verge Of Crash, Long Bond Yield Near 19-Year High

The bond market thinks as much of Trump’s China visit as I do.

Bond yields are ripping higher this morning along with the price of oil as Trump heads home from China.

If Trump’s visit to China was supposed to have accomplished something, the bond market doesn’t see it and neither do I.

Trump and Xi Want to Stabilize U.S.-China Ties. Now Comes the Hard Part.

The Wall Street Journal reports Trump and Xi Want to Stabilize U.S.-China Ties. Now Comes the Hard Part.

At the end of President Trump’s state visit to China on Friday, with Air Force One lifting off through the haze at Beijing’s airport, both sides hailed a reset in relations—though each has a starkly different idea of what that means.
For Trump, it is about opening China’s market to American business and reciprocal trade, reviving a U.S. policy he scrapped in his first presidency, when he had adopted a more hawkish attitude toward Beijing.
Chinese leader Xi Jinping, meanwhile, wants “strategic stability”—a predictable relationship in which Washington doesn’t impede Beijing’s economic and geopolitical rise.
The shared desire for stable relations is a change after years of mutual antagonism.
“‘Strategic stability’ from strategic rivalry is a major shift,” said Henry Wang, founder and president of the Beijing-based Center for China and Globalization. “We are moving to a new normal. This summit was an inflection point after a tough relationship that began with the start of Trump.”
Under the surface, however, there remains an intense rivalry that holds the potential to disrupt the world stage, despite the bonhomie of the two-day visit.
China is boldly pressing its claims on Taiwan, a self-governing island that the U.S. is committed to supplying with arms for its self-defense. China’s military is becoming increasingly aggressive in the Western Pacific, rattling U.S. allies and posing a serious military and geopolitical challenge to Washington. And China’s support of Iran—an issue Trump raised during his visit—could undermine U.S. efforts to force the regime to give up its nuclear program and halt its aggression in the Middle East.
Such disagreements didn’t cool Trump’s show of admiration for a man he repeatedly called his friend. Trump marveled at his reception, from a grand welcome ceremony to a Day Two stroll through the Chinese leadership compound in Beijing.
Throughout the visit, Xi sought to present China as a global power that is quickly closing the gap with the U.S. despite what it sees as efforts by multiple U.S. administrations to contain its rise.
Trump said he was “very impressed.”
Still, Trump left Beijing without offering details of the trade agreements he touted, namely China’s purchases of soybeans and agricultural products.
His one detailed announcement, that China would buy 200 Boeing aircraft—fewer than the expected 500—led the company’s stock to fall nearly 4%. By the time the U.S. delegation departed, there was no official rundown of deliverables from the meetings.
China wants concessions from the U.S. on Taiwan, including small but crucial rhetorical shifts such as moving from not supporting Taiwanese independence to publicly opposing it, while also limiting weapon sales to the democratic self-governed island.
Despite Xi’s statement this week, Trump remained silent on the topic of Taiwan, while Secretary of State Marco Rubio said U.S. policy toward Taiwan was unchanged.
Trump came to Beijing looking for China to pressure Iran, which largely relies on China for its economic survival, to give in to U.S. demands and agree to an end to the conflict.
During the summit, Trump suggested he and Xi saw eye-to-eye on Iran, noting Beijing agreed that ship traffic through the Strait of Hormuz should be free and Tehran should never get a nuclear weapon.
But China’s Foreign Ministry issued a mid-summit statement with the blunt message that the war should never have been started in the first place.

I Do Have Progress to Report

If that’s not amazing progress, what is?

Still not convinced? Well, look at this.

China Has a Ballroom

New Landmark Declared

Amazing Spin Job Here

Truth Social: When President Xi very elegantly referred to the United States as perhaps being a declining nation, he was referring to the tremendous damage we suffered during the four years of Sleepy Joe Biden and the Biden Administration, and on that score, he was 100% correct. Our Country suffered immeasurably with open borders, high taxes, transgender for everybody, men in women’s sports, DEI, horrible trade deals, rampant crime, and so much more!
President Xi was not referring to the incredible rise that the United States has displayed to the world during the 16 spectacular months of the Trump Administration, which includes all-time high stock markets and 401K’s, military victory and thriving relationship in Venezuela, the military decimation of Iran (to be continued!) — Strongest military on earth by far, economic powerhouse again, with a record 18 trillion dollars being invested into the United States by others, best U.S. job market in history, with more people working in the United States right now than ever before, ending country destroying DEI, and so many other things that it would be impossible to readily list. In fact, President Xi congratulated me on so many tremendous successes in such a short period of time.
Two years ago, we were, in fact, a Nation in decline. On that, I fully agree with President Xi! But now, the United States is the hottest Nation anywhere in the world, and hopefully our relationship with China will be stronger and better than ever before!

China Buying US Farmland Is Good Now

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Strategic Oil Reserve

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Bonds are crashing, the price oil is surging, and reserves dwindling.

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Checking in on the UK

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Shocking Sequence of Events

This is all quite shocking. One might have expected a better market reaction from those amazing Tik-Tok stats. Go figure.

Oh well, it’s Friday.

That means it’s time for another “deal is at hand” announcement. Tack on some great news about the ballroom, and I am sure everything will be fixed by Monday.

In the Real World

May 12, 2026: CPI Hotter than Expected, Highest in Three Years, a Genuine Disaster