For years, a 5% yield on the Treasury looked like a relic from another interest-rate era—where borrowers faced soaring loan rates. Now it’s back, capping a six-year surge from pandemic-era lows near 0.5%. The benchmark yield crossed 5% this month for the first time since 2007, but this appears different than the eve of the
Treasury Secretary Scott Bessent isn’t short of investors keen to rap his knuckles—and his friend and mentor, Stan Druckenmiller, was at the front of the queue. Bessent has been chastised by many for his recent attempt to manage prices in the bond market. As 30-year Treasury yields rose toward a near-20-year high last month, the
The federal interest burden has reached a new height, exceeding even the 1991 record, but analysts warn the risks associated with servicing the ever-growing national debt today are much higher than they were 35 years ago, analysts warn. A recent analysis from investment management firm Doubleline noted that in 2025, the federal net interest payment
Among the many potential downsides for letting the national debt get too high was that the federal government would suck up so much capital that businesses wouldn’t be left with enough. Today, U.S. debt is at $40 trillion, the federal budget deficit is on track to reach $2 trillion this fiscal year, and debt servicing
Facing an increasingly aggressive Iran and a slumping bond market, the Trump administration is betting that Treasury Secretary Scott Bessent can use the financial weapons in the government’s arsenal to achieve victory on both fronts. The idea is to kill two birds with one stone: getting Iran to fully reopen the Strait of Hormuz would
The enormous mountain of debt hanging over the economy has overshadowed the AI boom as the center of attention on Wall Street. For years—decades even—the spiraling trajectory of U.S. debt fueled dire warnings, which investors consistently brushed off as low borrowing costs helped turbocharge epic stock gains. Meanwhile, the debt pile galloped higher, interest costs
