United States Treasury

Government bond yields in the United States and Germany are climbing as Middle East tensions intensify, with the US-Iran conflict driving up oil prices and clouding the inflation outlook. Eurozone yields rose alongside Treasuries as investors priced in greater uncertainty about future interest rates, turning to bond markets as a gauge of how the escalating geopolitical situation might hit energy costs and monetary policy.

Investor Ross Gerber has warned that the United States cannot sustain Treasury yields above 5% without risking a debt spiral, as a bond market rout pushes borrowing costs higher and mortgage rates to their highest levels since 2023. His comments come amid heavy selling in US government debt, renewing concern about the sustainability of federal borrowing at today's interest rates.

Investor Ross Gerber is warning that the United States risks entering a debt spiral as a bond rout pushes Treasury yields higher. He attributes rising interest rates and inflation directly to President Trump's economic agenda, arguing it has failed to deliver on promises to fix the economy and control the deficit.

Traders and commentators are pointing to a rough day for US Treasury Secretary Scott Bessent, as the yen fell, oil and US Treasury yields rose, and Japanese yields climbed too. The moves are being read as signs that inflation pressures in both the United States and Japan are worsening, pushing US borrowing costs higher. Some posts link the tension to the conflict with Iran and warn the US is already heading toward a debt crisis.

Stock markets in the United States and Europe declined as bond yields continued climbing, with the 30-year Treasury yield hitting a 24-year high. The selloff persisted despite falling oil prices and a dovish speech from a Federal Reserve official, deepening concerns about borrowing costs and their impact on equities.