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Bond yields are surging: Here's why that could spell trouble
Investors are demanding higher returns as deficits swell and governments issue more debt, with U.S. national debt topping $40 trillion, officials said.
The main reason is soaring deficits and the resulting debt piles, which are fuelling doubts among investors that countries will get their financial houses in order.
And stubbornly high inflation in Europe and the US has accelerated further as the Middle East war pushes up energy prices, which may require central banks to raise interest rates.
Where are rates now?
Yields on government-issued debt rise when investors demand higher interest rates t…