Lena Petrova: $40 Trillion Bond Crisis, Washington Losing its Grip

The bedrock of the global financial system, the United States Treasury market, is currently experiencing a period of profound underlying tension. Historically viewed as the ultimate safe haven for investors worldwide, long-term US government bonds are now sending clear warning signs about the nation’s fiscal trajectory. Despite aggressive and strategic interventions by the US Treasury Department to stabilize the market, long-term yields have continued their stubborn march upward, reaching multi-year highs. This divergence between government policy and market reaction highlight growing skepticism among global investors regarding the sustainability of the US national debt, which has now breached the historic $40…