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US Treasury yields rise as bond vigilantes reawaken
Nigel Green, CEO of the global financial advisory firm deVere Group, has warned of the reawakening of ‘bond vigilantes’ as US government borrowing costs reach levels not seen since 2007. This shift is driving stocks lower and forcing investors to reprice risk across various asset classes.
Key economic indicators contributing to this trend include 30-year US Treasury yields persisting above 5% and oil prices climbing past US$85 per barrel due to geopolitical tensions in the Middle East. These factors are complicating the Federal Reserve’s efforts to manage inflation.
The scale of US federal debt is a significant factor, with debt exceeding 100% of the economy and annual interest payments surpassing US$1 trillion. The US Treasury market has grown significantly, from US$4.5 trillion in 2007 to over US$31 trillion today. Green suggests that as investors price in the risk of unchecked government spending, they are increasingly able to set the terms for bond buyers.
Entities
Federal Reserve · Nigel Green · US Treasury · United States · deVere Group
Claims
What the coverage asserts, and how many sources carry each claim.
- [● 3 SOURCES] Nigel Green warns that bond vigilantes are reawakening. www.finnewsnetwork.com.au · londonlovesbusiness.com
- [● 3 SOURCES] Annual US interest payments on federal debt have surpassed US$1 trillion. www.finnewsnetwork.com.au · londonlovesbusiness.com
- [● 3 SOURCES] Federal debt exceeds 100% of the US economy. www.finnewsnetwork.com.au · londonlovesbusiness.com
- [● 3 SOURCES] 30-year US government borrowing costs have reached levels not seen since 2007. www.finnewsnetwork.com.au · londonlovesbusiness.com
- [● 3 SOURCES] Oil prices have risen above US$85 per barrel due to Middle East geopolitical risks. www.finnewsnetwork.com.au · londonlovesbusiness.com
- [● 3 SOURCES] The US Treasury market has expanded from US$4.5 trillion in 2007 to over US$31 trillion. www.finnewsnetwork.com.au · londonlovesbusiness.com