Bond Markets Are Losing Patience — And Putting Governments on Notice

Headline of the day! 

Hopefully, Western countries with high government debt get the message! It is high time for Western countries to correct their irresponsible and reckless fiscal profligacy that has been going on for way too many years!

Hopefully, this latest rise in government bond yields is not a temporary fluke but a persistent warning!

"Something unusual is happening in global bond markets, and it is more consequential than the usual swings in yields. Government borrowing costs are rising across much of the developed world. The US 10-year Treasury is approaching 5 percent, and the 30-year Treasury yield is at levels not seen since 2007. “Meltdown” is too dramatic a word, but the bond market is clearly sending a message. Bond prices fall when investors demand higher yields, and global investors clearly want to be paid more for lending money to governments carrying large debts, running persistent deficits, and still contending with above-target inflation. ..."

Bond Markets Are Losing Patience — And Putting Governments on Notice | The Daily Economy "Rising yields are turning sovereign debt from an abstract fiscal problem into an immediate budget constraint."

Notice the chart below is outdated since US debt is now at $40 trillion