The increase in Treasury yields in the US is mainly due to the deterioration of government finances, not the activity of the technology companies. This assessment was given by Robin Brooks, a senior fellow at the Brookings Institution. He points to fiscal risks stemming from the large federal budget deficit.
In fiscal year 2026, the US budget deficit reached $1.99 trillion. At the same time, the cost of servicing the national debt rose to a record of $1.36 trillion. The first amount shows the budget gap, the second - the cost of servicing the already accumulated debt.
Against this background, the increase in the yield of government securities becomes significant not only for investors. This comes with a situation where the federal budget is forced to finance a large gap while incurring record interest costs. Brooks suggests looking for the reason for the movement in the debt market precisely in these fiscal risks, and not in the behavior of the technology sector.
Ξeconomics.