Credit: Robert Kiyosaki

Most people have never heard of the bond market.

But it controls your mortgage rate. Your job. Your cost of living. Your retirement account.

It is bigger than the stock market. Bigger than crypto. Bigger than real estate.

It is the most important financial market on earth, and almost nobody understands it.

So let me explain it simply.

What is a bond?
A bond is a loan.
When a government needs money and they always need money — they borrow it from the public by issuing bonds.

You give the government $1,000. They promise to pay you back in 10 years with interest along the way.

That interest payment is called the coupon.
The date they pay you back is called the maturity.

Simple.
Now here’s the part that matters.
The US government currently owes $38 trillion in debt.
And the interest payments on that debt?
$3 billion. Per day.
Every single day. Whether the economy is growing or contracting. Whether there’s a war or peace. Whether oil is $60 or $100.
$3 billion a day. Just in interest.
That money has to come from somewhere.
It comes from taxes. And when taxes aren’t enough they borrow more. 
Which adds more debt. Which creates more interest. Which requires more borrowing.

This can be referred to as the debt trap.
Once you’re in it — it is very hard to get out.

Now here’s what bond yields tell you and why you should pay attention.
When investors trust the government, bond prices go up and yields go down.
When investors lose trust, bond prices fall and yields go up.
Right now, bond yields are rising.
That means the market is demanding higher interest to lend money to the government.
Which means the government’s borrowing costs go up.
Which means more of your tax dollars go to paying interest and less goes to roads, hospitals, schools and defense.
Watch the bond market. It tells you the truth before the headlines do.
..
And here’s what bond yields do to everything else.
When bond yields rise stocks become less attractive.

Why take the risk of owning a company when you can get a guaranteed 5% from the government?
This is why rising bond yields often crash stock markets.
When bond yields rise mortgages get more expensive. Because mortgage rates are priced off government bond yields.

–  Every time yields go up buying a house costs more.

–  When bond yields rise the economy slows.

–  Businesses borrow less. Hire less. Invest less.

One market. Every corner of your financial life.