The Indicator from Planet Money · Tuesday, September 1, 2026
Economist E.J. Oume explains that high yields on US government bonds are primarily due to investor expectations of continued inflation and the increased supply of bonds in the market, including corporate bonds from tech companies. This situation pressures the government to offer higher rates, impacting borrowing costs.
“One is that investors are expecting that inflation will persist.”
“Another is that there's a lot of bonds for sale right now, and not just from the US government.”
“When there's a lot of bonds to choose from, the government has to offer a higher rate to attract investors, especially when a corporate bond seems maybe as risk-free as a government one.”