The International Monetary Fund reports that the "safety premium" traditionally held by U.S. Treasury bonds is eroding as national debt reaches $39 trillion. With annual deficits at $2 trillion and interest costs hitting $1 trillion, the sheer volume of new debt is testing investor appetite and driving up global borrowing costs. The IMF notes that the "convenience yield" for Treasuries has recently turned negative, partly due to competition from a record supply of corporate debt, including massive spending by AI hyperscalers. Read the full story at Fortune (subscription).
Source · Fortune
