The bond market is getting jittery about spend-happy governments
The bond market is showing signs of concern as government borrowing costs rise. The 30-year U.S. Treasury yield recently reached its highest level in 19 years, reflecting increased investor anxiety over fiscal policies. Economists are particularly worried about persistent deficit spending, especially in the United States, where annual federal deficits are around $2 trillion.
- ▪The 30-year U.S. Treasury yield hit 5.2 percent, the highest in 19 years.
- ▪Canada's 30-year bond yield is around 4 percent, a level rarely seen since the 2008 financial crisis.
- ▪Economists are concerned about huge and persistent deficit spending, particularly in the U.S.
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Open this photo in gallery:The Peace Tower in Ottawa in December, 2024. It’s getting costlier for governments to borrow money, writes Matt Lundy.Adrian Wyld/The Canadian PressShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountIt’s rarely a good sign when the bond market is creating headlines. Earlier this week, the 30-year U.S. Treasury yield hit 5.2 per cent, its highest level in 19 years. The equivalent debt in Britain is yielding the most since the late 1990s. And while Canada’s 30-year bond yield is relatively muted at around 4 per cent, it’s rarely reached those levels since the global financial crisis in 2008.Simply put, it’s getting costlier for governments to borrow money.
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