🦔The US just sold 30-year bonds at 5.22%, the highest borrowing cost since 2001. The day before, 10-year notes went at the highest since 2007. It's a big deal because the national debt is near $40 trillion, larger than the whole US economy, and all of it has to be refinanced at these higher rates over time. The government now spends more on interest than on national defense. My Take When the government pays 5.22% to borrow for 30 years, that rate pulls up everything else you borrow against, your mortgage and your car loan included. The Fed can cut short-term rates all it wants, but if long-term yields keep climbing because lenders are nervous about the size of the debt, your borrowing costs stay high or go higher. That split between what the Fed does and what you pay is already showing up, and it's going to get worse as $40 trillion in debt rolls over at these prices. The interest bill alone is running $1.17 trillion this fiscal year, up 15%, and the government now spends more servicing old debt than it does on defense. That money does nothing for anyone, just the tab for past borrowing. And the government is leaning harder on short-term bills to get by, which means it has to come back to the market more often and take whatever rate exists that day. We know how cheap money funded the AI buildout, the private credit machine, and the carry trade, and this is the other end of that story. The cheap money era paid for all of it, and the bill is arriving. Hedgie🤗