Punishing the invaders may have felt good, but it has cost the United States. Here, Ukrainians are shown carrying signs opposing the Ukraine war and Russian President Vladimir Putin during a street march in Bangkok on February 27, 2022, after Russia's invasion of Ukraine. Photo: Tommy Walker / VOA

Surging US Treasury yields are the main driver of global markets, depressing stock prices, pushing up the US dollar exchange rate, and threatening homebuilding and other rate-dependent economic activity in the United States.

As rates rise, moreover, the US Treasury deficit – already above 6% of GDP – will increase. Interest payments on the federal debt rose to US$1 trillion from $400 billion in 2021, adding to the blowout federal borrowing requirement of $1.8 trillion.

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