A sell-off in the U.S. bond market has pushed long-term U.S. borrowing to levels that haven’t been seen in nearly twenty years. The Trump administration has responded with two unusual interventions: an expanded buyback program for long-term debt and a U.S.-Japan coordinated effort to prop up the yen without selling U.S. Treasuries. Yields haven’t come down, however, and because U.S. yields anchor bond markets worldwide, this is being felt outside the United States.
The Council on Foreign Relations (CFR) turned to four of its experts to break down the continued bond market sell-off. They examine why Treasury’s market interventions haven’t worked, how rising U.S. yields are affecting other countries, what role artificial intelligence (AI) is playing in higher borrowing costs and how that could affect the AI sector, and what effect higher oil prices have had since the start of the Iran war.
by Council on Foreign Relations – Why U.S. Borrowing Costs Keep Climbing Despite Treasury’s Efforts
