Bonds Are Breaking, But I'm Not Worried (For Now)

U.S. bond yields have risen to multi-decade highs, but nominal economic growth continues to exceed borrowing costs, cushioning the impact on debt service. Households and large corporations remain largely insulated through fixed-rate debt locked in at low levels, while higher interest income supports private-sector cash flows. The article argues that elevated yields have not yet materially undermined U.S. economic resilience.