US government borrowing costs have jumped to their highest level in over two decades, which is bad news for the government, borrowers, and eventually stocks.

• The 10-year and 30-year government bond yields hit highs not seen since 2002, because investors now want to be paid more to lend to a government over $40 trillion in debt.
• Treasury Secretary Scott Bessent brushed off the warnings, calling critical coverage anti-American and pointing out that borrowing costs are rising worldwide.
• Higher rates feed on themselves: the government already spends over a trillion dollars a year just on interest, which crowds out everything else it wants to pay for.
• Ordinary people get hit through pricier car loans, mortgages, and credit cards — and some lending dries up entirely.
• Ray Dalio expects a severe debt crisis within three years, and if the Fed prints money to cover the bills, the dollar weakens and bonds get even harder to sell.

Outlook: Expect borrowing costs to stay high, with money shifting out of companies and stocks into safer bonds — the setup for a broader market slide.