The world’s attention is focused on America’s debt as yields on 30-year government bonds exceed 5% for the first time since May. This trend has investors on edge, and experts warn that it may be a sign of bigger problems to come.
In recent days, the yield on US Treasury bonds has jumped significantly, sparking concerns about the country’s financial health. The latest surge came shortly after the House of Representatives passed President Trump’s budget bill by one vote.
While the exact impact of rising bond yields is difficult to predict, it’s clear that this trend is having a ripple effect throughout the global economy. As interest rates rise, borrowing becomes more expensive, and investors may be forced to reassess their portfolios.
The situation is not unique to America, however. Europe has already begun to feel the effects of rising interest rates, and some analysts predict that retaliatory measures from European countries could have far-reaching consequences for global markets.
Source: https://www.economist.com/finance-and-economics/2025/05/25/soaring-bond-yields-threaten-trouble