US household debt hits record as long‑term yields surge

U.S. household debt reached a new historic high of $18.8 trillion in the first quarter of 2026, according to a Federal Reserve Bank of New York report. Debt‑service payments now consume 11.3 % of disposable income, up from 9.1 % in early 2021. The increase is driven by higher mortgage and auto‑loan balances, while credit‑card debt has risen 60 % over the past five years. Delinquency rates climbed to about 4.8 % and could worsen if higher interest rates further strain borrowers, potentially tightening credit conditions.

At the same time, yields on 30‑year U.S. Treasury bonds rose to their highest level in 19 years, pushing up long‑term borrowing costs worldwide, including German and Japanese sovereign bonds. Markets cite rising inflation expectations and geopolitical tensions that have lifted energy prices as the primary drivers. The twin pressures of record household debt and soaring sovereign yields raise concerns about consumer spending, economic growth and financial stability.