Bond Yields Jump as Debt Surge Fuels Inflation Fears

Long-term Treasuries sold off as investors grow nervous about higher inflation and the massive new debt, pushing the 30-year yield above 5% and the 20-year near 5.2% while the 10-year hovers around 4.7%. The Fed’s rate-cut regime and a roughly $6 trillion bigger debt pile raise the bar for future demand, prompting Treasury to shift issuance toward shorter maturities and sending inflation-linked yields higher as inflation expectations persist. The market remains skittish despite some apparent calm, and lawmakers are urged to address debt dynamics before another debt scare escalates.