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Soaring U.S. debt doesn't just put America at risk. It could trigger contagion across global markets, IIF warns

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Borrowing costs in certain countries often move in tandem, meaning volatility in Treasury bonds will create ripples in other debt.
The article from Fortune, published on May 31, 2025, discusses the escalating U.S. debt and its potential to trigger a global financial contagion. As the U.S. continues to borrow at unprecedented levels, the rising national debt is pushing up Treasury yields, which in turn increases borrowing costs globally. This situation is causing concern among investors and policymakers worldwide, as higher yields on U.S. Treasuries could lead to a sell-off in bond markets, destabilizing economies that rely heavily on U.S. debt. The article highlights the interconnectedness of global financial systems and warns that without effective management, the U.S. debt crisis could have far-reaching consequences, impacting everything from sovereign debt to corporate borrowing costs and potentially leading to a broader economic downturn.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/31/us-debt-contagion-global-bond-markets-treasury-yields-borrowing-costs/ ]