From Yahoo Finance: 2025-06-08 10:47:00

Over the past year, half of all U.S. bond market debt has been Treasurys, issued by the government. Chief economist Torsten Sløk expressed concern, stating that such a high percentage of credit going to the government is not healthy. The growing budget deficit has caught investors’ attention, with President Trump’s tax bill predicted to swell the deficit by $2.4 trillion. This could lead to higher borrowing costs for all credit products linked to the Treasury market, impacting the economy. Sløk warns of potential consequences as investors allocate more funds to the government rather than financing growth. Foreign investors own nearly one-third of outstanding Treasury debt. This analysis highlights the ripple effects of the Treasury’s mounting debt.

Read more: Half of the bond market is US Treasurys. Why it’s ‘not healthy.’