US bond yields are on the rise, partially due to concerns that the total US public debt has exceeded $40 trillion. Despite this, congressional lawmakers appear to be largely ignoring the warning signs from the bond market. Some policymakers are even suggesting that more deficit spending is likely in the future.
This situation marks the worst stretch for the bond market since 2006. The rising yields indicate growing apprehension about the nation's financial trajectory. However, the political response suggests a continuation of current spending habits rather than a shift towards fiscal austerity.
Erik Wasson, a congressional reporter for Bloomberg, highlighted these developments in the "Washington Edition" newsletter on September 2, 2026. His report fills in for Nancy Cook and focuses on the political reaction to the bond market's signals, indicating a disconnect between financial market concerns and legislative priorities.
