USA: Hot Autumn in the Bond Market: How America's Debt Experiment is Scaring Investors
Under pressure from the bond market, the US Treasury is taking greater and greater risks. The consequences for the markets could become even more drastic - and extend far beyond the US.
The US has entered a precarious path of fiscal dominance, posing a significant risk to bond markets and the global economy. The country's debt has surpassed $40 trillion, with over a quarter of this amount accumulated during President Donald Trump's two terms in office. The Congressional Budget Office estimates that debt will continue to rise to around $46 trillion by 2030.
As a result, investors are demanding higher interest rates to finance large deficits, driving up yields on US Treasury bonds to their highest levels since the 2007/08 financial crisis.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
