Bond-yield surge tests growth talk as voters feel the pinch

Long-term U.S. yields are rising amid deficits, AI investment optimism, and energy costs, even as Treasury Secretary Scott Bessent frames this as a growth story. The higher borrowing costs threaten mortgages and consumer loans, potentially fueling voter anger ahead of the midterms and complicating the GOP’s political prospects. Bessent touts a “big toolkit” of fiscal reforms to calm yields and keep growth on track, while markets and the Fed weigh the implications for inflation, deficits, and monetary policy.