The Marriner S. Eccles Federal Reserve building. Photographer: Stefani Reynolds/Bloomberg.

For those unsettled by the relentless rise in government bond yields in the United States and across much of the world lately, the message from markets is getting clearer by the day: Get used to it. The world’s biggest bond market and global bellwether is leading a reset higher in borrowing costs, with the prospect of a prolonged period of elevated rates carrying consequences for economies and assets everywhere.

Just days into 2025, yields on U.S. government debt are surging as the risks to supposedly super-safe assets mount. The economy continues to power ahead, while the Federal Reserve is rethinking the timing of further interest rate cuts and Donald Trump is returning to the White House with policies prioritizing growth over debt and price fears, as borrowing has soared.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
  • Informative weekly newsletter featuring news, analysis, real-world case studies, and other critical content
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Corporate Borrowing & Debt
News