Long-term bond yields surge due to global fiscal risks, signaling economic downturn

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Long-term bond yields, specifically the 30-year US Treasury, have surged to levels not seen since 2007, primarily driven by global fiscal risks rather than solely US-specific issues. This widespread increase in borrowing costs, especially in countries with higher fiscal risk, indicates a potential global economic downturn and a search for safe assets, with the US potentially becoming the 'least ugly shirt' in a pile of dirty laundry.