Tech Insider
trader shocked
Strange things are going on in debt markets.

Stephanie Keith/Getty Images

  • The US government, with its AA+ credit rating, now must pay more than junk-rated Vietnam to borrow.
  • That's because Treasury bond yields have nearly tripled since 2021 due to Fed rate rises.
  • US 10-year bond yields are now about 4.5%, compared with about 2.8% in Vietnam.

Global debt markets are the system that moves big money between big borrowers and lenders — from governments and central banks to companies and financial institutions.

To give you a sense of its size and importance, cumulative global debt stood at $235 trillion at the end of 2022, according to the International Monetary Fund. That's almost 10 times the size of the entire US economy.

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Source
Bonds go bonkers as the US government now pays more than Vietnam or Morocco to …