Global Bond Debacle: U.S. Debt Costs Soar Above Junk-Rated Vietnam and Morocco

Surging US borrowing costs have unexpectedly surpassed those of lower-rated nations like Vietnam, Morocco, and Bulgaria, upending traditional bond market norms. This shift, driven by the Federal Reserve’s aggressive anti-inflation rate hikes, has elevated US Treasury yields to unexpected levels, raising concerns about America’s ballooning public debt, now exceeding $33.7 trillion. Recent downgrades by Moody’s and Fitch Ratings reflect the growing unease about the US’s financial health in the face of a global debt market totaling $235 trillion.