National Debt

The stock market gets the movies and big headlines. But now, bond traders are having a moment in the spotlight — for better or worse.

Oil prices that top the $100-per-barrel mark have downstream effects on all kinds of things. Bonds are among them.

The sheer amount of borrowing by countries covering budget deficits and tech companies building AI infrastructure is pushing rates higher.

A look at the bond market, a trade deal with Canada, and all the rest of the week’s economic news.

The Treasury wants to use short-term borrowing to finance the national debt. While short-term interest rates are usually lower than long-term rates, they’re also more volatile.

The U.S. has already surpassed its 2025 budget deficit with about a month and a half left to go in its fiscal year. According to the Congressional Budget Office, the government is on track to borrow more than $2 trillion in fiscal year 2026.

The kinds of investors buying bonds these days may trade in and out of the market faster, and they may flee if something goes wrong, says Greg Ip of the Wall Street Journal.

High levels of U.S. debt and competition from tech companies issuing their own bonds are driving the high yields.

Austan Goolsbee, president of the Chicago Fed, says Chair Warsh’s new policy to cut back on forward guidance could prevent dings to Fed credibility.

Fed Chair Jay Powell held a press conference after every interest rate decision. It wasn’t always done this way.