4% Increasingly, 4% seems to be the magic number. When US 10 year yields hit that level, the system wobbles. Various collapses attest to that, first in Sri Lanka and most recently in the UK. US debt now sits at $31 trillion. At 4% interest their annual repayments would be $1.2 trillion, 50% more than they spend on defence. The vast majority of US debt matures before 2027 so this is a real issue.
Private Money
Private Money
Private Money
4% Increasingly, 4% seems to be the magic number. When US 10 year yields hit that level, the system wobbles. Various collapses attest to that, first in Sri Lanka and most recently in the UK. US debt now sits at $31 trillion. At 4% interest their annual repayments would be $1.2 trillion, 50% more than they spend on defence. The vast majority of US debt matures before 2027 so this is a real issue.