The market’s waning appetite for Treasuries suggests the U.S. is on a path that begins with rising yields and ultimately ends in a painful period of austerity. A persistent 7% fiscal deficit is never sustainable and may finally be reaching its limit. The Big Beautiful Bill shatters any illusion of fiscal restraint and unleashes a surge in Treasury supply that is almost certainly underestimated. The weakening dollar accompanying rising yields is a classic sign of […]