Something is about to break: Real yields break things up here, at 185bps, the highest since Lehman. Bond markets anticipate spiraling debt interest expense due to increased rates.

Real yields break things up here, at 185bps, the highest since Lehman. pic.twitter.com/7od1pAtJLB

— Lawrence McDonald (@Convertbond) August 15, 2023

Yes for sure. Bond markets understand that, on top of the continued large deficit spending, interest expense on the debt is going to start spiraling as rates increase. This expense will be nearly impossible to control, and the bond market senses that. https://t.co/MLnYFsU229

— David Sommers (@dgsommersmkts) August 15, 2023