Source: Cobden Centre
by Ryan McMaken
“The US government is on track to borrow more than two trillion dollars this year, but that’s going to require a lot of new loans from investors, and it’s looking like there is limited investor appetite for ever larger amounts of federal Treasurys. On Wednesday, the auction of 20-year Treasury bonds was so weak that the 20-year yield climbed to over five percent, and long-dated debt yields hit levels not seen since November 2023. It’s likely no surprise that this tepid demand for new US Treasurys coincides with recent news that Donald Trump’s so-called ‘big, beautiful’ spending bill does nothing to cut overall spending and will only add to the federal deficit — at least $3 trillion more — in coming years.” (05/27/25)
https://www.cobdencentre.org/2025/05/interest-rates-rise-again-as-treasury-auction-comes-up-short/