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BUSINESS
The $40 trillion national debt and the bond market’s revolt: top Wall Street strategists explain how we got into this mess
David Kelly and Torsten Slok reached the same conclusion from opposite directions: with DC unwilling to touch the deficit, the bond market is the bad cop.
GlobeSignal-AImedium certainty
- Why it matters
- Bond market pressure directly affects borrowing costs for the government and eventually for businesses and individuals through higher interest rates, creating real fiscal constraints where political will does not.
- Most affected
- Borrowers seeking loans or mortgages — Face higher interest rates as government debt competition raises market costs.
- Likely next
- Whether the Federal government changes deficit spending policies, or bond yields move higher in response to sustained debt growth.
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