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U.S. debt is even worse than it seems, and rising Treasury yields are now an ‘all-hands-on-deck situation,’ top economist warns
- Long-term Treasury yields are climbing even when economic data looks weak, a sign experts say demand for U.S. debt is weakening and policymakers are scrambling to prevent borrowing costs from surging.
- U.S. debt is near $40 trillion with annual deficits approaching $2 trillion; traditional buyers are pulling back, hedge funds and gold are rising, and that shift is making Treasury markets more volatile.
- Analysts disagree on what rising yields mean—some see a brewing debt problem and market discipline, others call it a return to normal rates—while Iran-related tensions and higher oil add inflation risk.
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