Bond market starting to realize that nothing stops this train.

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The bond market is jittery, with investors offloading bonds and pushing yields up, like the 30-year U.S. Treasury hitting 5.13%, the highest since 2007. A new House-passed tax bill, now in the Senate, could add trillions to the U.S. debt. Moody’s recent U.S. credit rating downgrade and sticky inflation are fueling fears. Higher yields mean pricier borrowing, so mortgage rates, car loans, and credit card rates might spike, making homes and big purchases tougher to afford. Stocks could slide as bonds gain appeal. If the government keeps stacking debt, investors might balk at U.S. bonds, risking a crisis, soaring costs, or a market crash like the UK’s in 2022. Some call this an overreaction, but the bond market is sounding alarms about this debt train.

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