US Debt Soars to $40 Trillion, Global Bond Market Sent into Turmoil

The US Treasury bond yields have reached multi-decade highs, exceeding levels last seen in June 2007. The 30-year U.S. Treasury yield topped 5.33% and the 10-year Treasury yield rose above 4.7%. This development is a cause for concern, as it historically signals negative implications for financial markets.

Fund Manager-Fixed Income Sneha Pandey notes that the recent move in long-dated U.S. Treasury yields 'appears to reflect more than just inflation or Federal Reserve policy expectations.'

The US debt has reached an astonishing $40 trillion, with a budget deficit of alarming levels. This year's debt interest burden has surpassed $1.17 trillion, accounting for 19% of total federal spending in fiscal year 2026.