US government bond yields surged on August 22, 2026, as the market grapples with the implications of a $40 trillion national debt and rising borrowing costs.
The sell-off in government bonds reflects growing skepticism among investors regarding the effectiveness of current fiscal policies to curb long-term inflation.
Economists note that the rising cost of capital is impacting global financial stability, with debt levels now a primary focus for central banks from Tokyo to London.