Record Debt Floods Market as Washington’s Spending Spooks Investors

The U.S. Treasury is selling more debt than ever before, but the buyers are getting harder to find. As the government borrows heavily to cover massive deficits, the bond market—where nations raise cash by selling IOUs—is turning hostile. Investors, worried about Washington’s unchecked spending, are demanding higher returns, which raises borrowing costs for everyone. This trend threatens to make the country’s debt problem even worse, as interest payments balloon. For now, the market still buys, but the warning signs are clear: profligate governments face a reckoning.