From mortgages to inflation, concerns about the public finances of major economies have wide-reaching consequences

When Donald Trump was asked recently about the threat of rising interest rates on US government debt, he told baffled reporters: “The ultimate intervention is our military. And if we have to use that, we will.”

Perhaps not surprisingly, Trump’s bellicose words did not soothe fractious bond markets, and his resumption of the bombing campaign against Iran only made matters worse.

Treasury secretary Scott Bessent’s attempt to calm bond markets is a sign of weakness not strength

“Look, there’s nothing magic about that $40tn number,” the US Treasury secretary, Scott Bessent, told CNBC insouciantly last week, as the country’s debt mountain surpassed another bleak record.

Yet Bessent’s decision to intervene in government bond markets in an effort to combat soaring yields belied his studied calm in TV interviews – and reignited fears the US may be on the road to a debt crisis.