'The U.S. is not the only game in town anymore’ — Treasury debt faces more competition from higher-yielding bonds overseas than in recent decades
The bond market is one of the few forces in the world strong enough to get politicians to snap to attention. It also helps dictate how much ordinary people have to pay on their mortgages and car loans, as well as how much they earn from their savings accounts and 401(k) plans.
This week rising bond yields forced the U.S. Treasury Department into an unusual intervention and raised the specter of higher borrowing costs putting the brakes on consumer spending, the lifeblood of the economy. It also sparked concerns that investors might finally be thinking twice about financing a seemingly endless flow of government borrowing.
Here’s a look at what’s going on and how it affects everyone:
Fortune
'The U.S. is not the only game in town anymore' — Treasur...
Yields on U.K. bonds have reached 5.81%, and German bonds are also paying 3.76%, versus 5.27% for a comparable U.S. bond. It's a big reason U.S. rates have been drifting higher.
what, it affects liberals and conservatives?
By
Crnr2Crnr ·
