The bond market is signaling trouble ahead. This is why you should pay attention

Bond markets are selling off sharply, with investors focused on two core risks: inflation eroding the value of existing bonds and growing U.S. government debt. The article explains how bond prices and yields move in opposite directions—when bond prices fall, yields rise as investors demand higher interest. It notes that the U.S. Treasury reported federal debt hit a record-shattering $40 trillion on Wednesday, a major driver behind the move. It also highlights that the yield on the 30-year Treasury reached its highest level since 2007. The piece frames the sell-off as a signal of concern about the outlook for inflation and fiscal spending.