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.