Published Sep 16, 2026, 10:25 PM ET · Updated 2 months ago · 1 source

US Fiscal Deficit Drives High Bond Yields

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Original Report

The significant US fiscal deficit, exceeding $40 trillion in total debt and running at $2 trillion annually, along with increasing interest payments that now surpass defense spending, are the primary drivers of high bond yields. Other explanations, such as economic strength, competition for capital, and geopolitics, are secondary and potentially politically motivated omissions.