"I want to come back as the bond market. You can intimidate everybody." --- James Carville (with the mandatory AI angle, of course)

This is a big story, certainly bigger than you might have guessed from the coverage. Smart commentators like Patrick Boyle and the Financial Times have been ringing the alarm bell on the state of debt, particularly involving the unregulated Wild West of private credit, for a while now. It is one of those stories where the implications can genuinely keep you up at night. Bond markets are getting hammered. Here’s what’s driving the sell-offby John Towfighi Investors’ concerns over a range of issues from inflation to hefty government deficits are driving a bond market sell-off, creating a headache for policymakers and pushing up borrowing costs for governments and consumers.The 30-year US Treasury yield on Tuesday hit 5.34%, its highest level since 2007. The 10-year yield hit 4.74%, hovering near the highest level of President Donald Trump’s second term. The major factors here are inflation, tariffs, the accumulated bad habits of the era of free money and the asset bubble, national…