Soaring bond yields, gaping deficits and towering debts: what could go wrong?
Why now
Thesis: Rising yields with widening deficits raise fiscal-dominance shock risk.
Catalyst to watch: Worsening deficits and debt loads.
Main risk: Term-premium or fiscal-dominance shock.
Why it matters
Rising yields alongside widening deficits and debt loads raise the risk of a fiscal-dominance or term-premium shock.
Sources
- googlenews · news.google.com · 2026-09-16 18:22 UTC