US government bond yields have soared as the market grapples with a $40 trillion national debt, increased borrowing for AI infrastructure, and geopolitical instability from the Iran war.
The sell-off in longer-dated Treasury bonds has unnerved global investors, as the cost of capital rises, potentially making goods and services more expensive across the rich world.
The failure of recent bond buyback rallies has left policymakers scrambling to stabilize the market, with concerns mounting over the long-term sustainability of current US fiscal policies.