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Epic Economist, 10/10/26
"The Next Global Financial Crisis Is Erupting Right
Now As Bond Yields Skyrocket All Over The World"
"The global bond market is starting to crack, and most Americans have absolutely no idea what is coming. On Wednesday, October 7th, the yield on the 30-year U.S. Treasury closed at 5.684 percent, and the 10-year hit 5.307 percent, its highest level since 2002. For years, Washington borrowed as if the money would never run out. Now the Congressional Budget Office projects a deficit of 1.8 trillion dollars this year, and net interest on the debt is heading toward about 970 billion dollars, climbing to 2.1 trillion dollars a decade from now. When yields skyrocket, bond prices crash. That is really bad news for U.S. banks, which are holding roughly 4.81 trillion dollars in Treasury and agency securities. You might remember what happened to Silicon Valley Bank in the spring of 2023. And this is not just an American problem. French 10-year yields have soared by more than 100 basis points since the start of 2026, and French public debt has reached about 3.596 trillion euros, a ratio not seen since 1946. In Britain, the 30-year gilt briefly hit 6.029 percent, its highest level since 1998. In Japan, gross public debt is projected at about 203 percent of GDP.
Needless to say, ordinary families are going to pay for all of this. The average 30-year fixed mortgage rate hit 7.28 percent on October 1st, the highest level since November 2023. On a 400,000 dollar loan, the monthly payment jumps from about 2,486 dollars to about 2,737 dollars. Governments that spent decades piling up debt can no longer borrow gigantic sums at rock-bottom rates, and the pain is going to spread in the coming months. Will France be the first domino to fall? Nobody knows for certain. But the time to get your household ready is now, before the next wave hits."
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