Global bond yields surge as debt fears test bitcoin’s hedge narrative
Long-term borrowing costs are reaching multi-decade highs as U.S. debt approaches $40 trillion and AI hyperscalers accelerate bond issuance.
Source: CoinDesk
―
DW NOTE
The US is issuing debt at $1.8 trillion per fiscal year while the Fed holds rates flat at 3.63% and inflation runs at 3.4%. Long-term yields are rising because the market is repricing default risk in real time. Bitcoin was supposed to benefit from sovereign insolvency fears — instead it has spent 2026 watching gold climb 11.6% in a month while crypto capital rotates into physical assets with no counterparty.