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Why the government’s debt problem is your borrowing problem — but also your opportunity to save - MarketWatch

1. Higher Treasury yields impact financing costs for loans and mortgages. 2. Current yields for 10-year and 30-year Treasuries are at 2007 levels. 3. Rising national debt contributes to increasing interest rates, raising borrowing costs. 4. Concern over fiscal health impacts bond market dynamics and Treasury yields. 5. Fed rate cuts may delay until 2026, affecting mortgage and loan rates.

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FAQ

Why Bearish?

Increased Treasury yields lead to higher borrowing costs, negatively impacting loan demand. Historical context: Rising yields from previous national debt crises have led to similar bearish trends.

How important is it?

The article discusses direct implications of Treasury yields on consumer loans, closely tied to TMUBMUSD10Y.

Why Short Term?

Current legislative actions and market responses to bond yields will have immediate effects. Immediate uncertainty in fiscal policies creates short-lived volatility in TMUBMUSD10Y.

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