@MountainTracker is right. Buyers are shying away from buying long maturities.
It makes sense, why would anyone lock up their money for 30 years at a low rate in this volatile inflationary environment?
The Japanese have gotten away with it for awhile...but now that the Biden admin and some of the European countries have unleashed horrible inflation, it has a lot of buyers nervous.
This is a HUGE deal. How are countries going to fund their long term debt? If countries have to pay very high rates on their massive debt, their deficit spending goes WAY up.
Does anyone remember getting over 10% on long term treasuries during the Carter Admin? Along with that came 18%+ mortgages that killed the housing market. I'm not saying this whole thing is going to blow up- but it could. Then stuff like Oil and commodities will go through the roof.
It surprises me that voters around the world are not more aware of the importance of being fiscally conservative. Watch Portugal, Italy, Spain, Japan and France for a break in the bond market- those will go first.