The bond market just sent Washington a very clear financial warning. The 10-year Treasury yield recently hit 5.04%, reaching levels unseen since 2007. At the same time, the Federal Reserve raised rates for the first time since 2023. While inflation and oil prices sparked the initial shift, analysts point to a deeper structural problem driving yields upward.
In August, the gross national debt crossed $40 trillion. The pace of borrowing is accelerating. The debt hit $38 trillion last October and $39 trillion in March, meaning the government is now borrowing a trillion dollars every five months. With one month still remaining in the fiscal year, the deficit sits at $2 trillion.
