As the reality of increasingly large deficits in the US becomes more clear, the bond market is explicitly reflecting investor displeasure.
Real yields are now the highest they have been since 2007, and as BofA Global Research states, “Debt-to-GDP is already at 98%, and deficits at 7% of GDP risk a bond-buyer’s strike, driving borrowing costs sharply higher.”
May 22, 2025
As the reality of increasingly large deficits in the US becomes more clear, the bond market is explicitly reflecting investor displeasure.
Real yields are now the highest they have been since 2007, and as BofA Global Research states, “Debt-to-GDP is already at 98%, and deficits at 7% of GDP risk a bond-buyer’s strike, driving borrowing costs sharply higher.”