Published Oct 4, 2026, 9:03 AM ET · Updated a month ago · 1 source
US bond yields rising due to strong nominal GDP and loose fiscal policy
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Original Report
The spike in bond yields is attributed to robust nominal GDP growth, estimated between 5.5% and 6.5%, and loose fiscal policy, specifically the US government's large deficits, which necessitates central banks to tighten monetary policy by raising interest rates to curb inflation, even at the risk of a recession.