The bond market is sending CEOs a blunt message: Borrowing costs are going to go up

Good morning. The era of cheap money is officially over. The bond market, not the Fed, is giving the clearest signal to CEOs that their borrowing costs are going up. U.S. Treasury Secretary Scott Bessent’s $4 billion buyback plan for longer-dated government debt managed to calm bond markets for barely a day before we saw another sell-off, pushing up the yield on the 30-year Treasury. With the U.S. national debt now topping $40 trillion, few seem to share Bessent’s view that “we can grow our way” out of the fiscal burden. To some extent, skittish bond markets are another example of growing risks—and costs—in the U.S. economy. It’s even more likely that the Fed will raise interest rates when it meets again in September. Higher yields mean Washington is now paying close to $3.2 billion a day