Prof G Markets · Thursday, October 1, 2026
Rising long-term bond yields are attributed to increasing demand for loans from substantial government borrowing and concerns about the US fiscal future, rather than solely Federal Reserve policy. Experts suggest this indicates anxiety about the US economy and its debt repayment capabilities.
“And then there are deeper questions on which I'm somewhat inexpert about... geopolitical risk, generally speaking, it used to be geopolitical risk would lead people to load into the US, the safe currency, but are we safe anymore or are we the source of the geopolitical risk?”
“I think the simpler thing is just no one sees fiscal repair coming anytime soon.”
“And if that's the case, the demand for loans is going to be high for a long time. And if that's the case, then the interest rate, which is the price of loans, is going to be high for a very long time.”