The Impending Impact of Bond Market Sell-Off on Your Finances

The sell-off in bond markets, which has resulted in high bond yields, is impacting borrowing costs such as interest rate payments for credit cards, mortgages, and auto loans. This could lead to a broader economic slowdown, as businesses face higher debt servicing costs and may shy away from hiring and investments. The U.S. government will also have to pay higher interest rates on its bonds, widening the country's budget deficit. Additionally, the decline in bond prices is causing difficulties for banks, as their bond holdings decline in value and they have to pay more interest to depositors.