Rising US debt and yields threaten global growth, will keep market on edge

The yield on the 30-year US government bond recently crossed the psychological 5 per cent mark. The yield on 10-year US government bonds has also inched up

Jamie Dimon, chief executive officer of JPMorgan Chase, the world’s largest bank by market capitalisation, recently warned that a crack in the US bond market was imminent. Undoubtedly, the prediction is dire, and if it comes true, the consequences for financial markets and the global economy could be severe. The US has the largest and most liquid government debt market in the world. Since global financial markets are deeply interconnected and interdependent, a dislocation in the US debt market can impact practically every financial asset across the world, with significant implications for the real economy.

 

The yield on the 30-year