Bond market sell-off sends warning to countries running high debt | DW News

By DW News

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When governments spend beyond their means, they sell bonds to finance their debt. It allows countries to kick the can of balanced budgets down the road, until they hit a dead end. Now a major sell-off on global bond markets is pushing borrowing costs higher and forcing some hard choices. Is bond market warning governments that the era of cheap money is coming to an end? What will be the impact on the global economy? DW speaks to Carsten Brzeski, Global Head at Macro Research and Chief Economist at ING Germany, on US economic interventions Chapter Breakdown 0:00 Why yields go up when bond prices go down 0:36 James Carville, strategist for establishment Democratic candidates, former Bill Clinton campaign strategist, on why the bond market is so consequential 0:52 US Treasury Secretary Scott Bessent announces bond buyback scheme 1:14 US President Trump on whether he directed Bessent to do the intervention 1:56 Markets react to US debt (40 trillion USD) and the war in Iran, with 10-year

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