Fort: US Treasury's market measures
The debt of the United States has surpassed $40 trillion, becoming a significant factor influencing the movements of bond, stock, and currency markets. The cost of servicing this debt has risen to over one trillion dollars annually, putting increased pressure on the bond market. This is evidenced by the surge in yields on 30-year bonds, reaching their highest level in 19 years, raising concerns about future inflation, economic growth, and geopolitical tensions. The U.S. Federal Reserve implemented a bond buyback program to support the market and alleviate pressure, leading to a decline in yields and an improved performance of stocks. Conversely, the value of the dollar fell against major currencies such as the euro and the British pound, while demand for gold increased as a safe-haven asset. However, these measures are temporary, and experts emphasize that sustainable solutions require structural reforms to address the debt trajectory and ensure long-term fiscal stability.
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