The bond market is reflecting optimism about the American economy
Surging rates on long-term bonds have caught the attention of investors
Long-term interest rates rose when the Federal Reserve increased its federal-funds rate in March 2022
Rates flattened out towards the end of the previous year but started climbing again in May
As of October 11th, the yield on ten-year Treasury bonds reached 4.7%, near a 16-year high
Rising long-term rates are unfavorable for bond investors, resulting in what's been called "the greatest bond bear market of all time" by Bank of America
This trend is also concerning for the U.S. government, as it increases the cost of financing the national debt
America's debt currently stands at $26 trillion and continues to grow
In the fiscal year ending on September 30th, 2023, interest payments on the national debt reached $660 billion, a significant increase from the previous year's $475 billion
The Congressional Budget Office had initially projected a lower cost of $442 billion for these interest payments in May 2022, but the actual costs turned out to be considerably higher