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 …