Great Bond Shakeout Locks In a 5% World ‘Until Something Breaks’
US Treasury yields are rising, signaling a potential fundamental shift in the bond market. Factors contributing to higher borrowing costs include record national debt, budget deficits, and Federal Reserve efforts to curb inflation.
As yields on US Treasuries soar past one high after the next, a reality is sinking in deeper across Wall Street and Washington: More than merely a bond-market slump, this might just be a fundamental shift. Myriad forces have combined to push the government’s borrowing costs higher — from $100-a-barrel oil and the AI spending boom, to yawning US budget deficits adding to a record $40 trillion debt load — all against a backdrop of a Federal Reserve bent on cooling inflation that’s run well past…
READ NEXT
More on the wire
AI TLDR
A powerful nor'easter is causing widespread power outages and flooding across the East Coast. Forecasters expect the severe weather conditions to persist throughout the weekend.
AI TLDR
Yonkers barber Jeury Fernandez Navarro was sentenced to 2.5 years in prison for a straight-razor attack that severed a customer's artery. Prosecutors had requested a five-year sentence for the assault.
AI TLDR
No. 12 USC will face No. 20 Oregon in Los Angeles, aiming to end a four-game losing streak against the Ducks.