π° What Happened
Treasury Secretary Bessent tried buying more government bonds to push yields down, but prices rebounded and the 30-year yield neared a 20-year high. Debt servicing now absorbs 13.5% of federal spending as debt tops $40 trillion.
π The Backstory
Yields have climbed since the 2022 inflation surge, sharply raising the cost of federal debt. Payments' share of spending has more than doubled since 2021.
π― Why It Matters
Higher yields and huge debt could erode the US's safe-haven status. Rising interest costs squeeze the budget and complicate bond markets.
Treasury Secretary Bessent tried buying more government bonds to push yields down, but prices rebounded and the 30-year yield neared a 20-year high. Debt servicing now absorbs 13.5% of federal spending as debt tops $40 trillion.
Yields have climbed since the 2022 inflation surge, sharply raising the cost of federal debt. Payments' share of spending has more than doubled since 2021.
Higher yields and huge debt could erode the US's safe-haven status. Rising interest costs squeeze the budget and complicate bond markets.
π° Source: Guardian AU Business
theguardian.com β
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