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US debt fears rise as yields top 5% and deficit nears $2 trillion amid political gridlock.

Market News
15 Oct 2026
CNBC
View Source
Bearish
US debt fears rise as yields top 5% and deficit nears $2 trillion amid political gridlock.

Long-term US Treasury yields have surpassed 5%, pushing mortgage rates near 7.5%, while the federal deficit is expected to reach around $2 trillion. This combination is slowing the housing market and increasing borrowing costs, with political divisions after the midterm elections making meaningful deficit reduction unlikely in the near term. Rising interest rates and heavy government debt issuance are straining the economy, and without bipartisan fiscal solutions, the US faces a challenging path ahead to manage its debt sustainably.

The story on the $2 trillion US federal deficit and 5% Treasury yields provides context for market conditions. For readers following US stocks on Pluang as of Oct 15, 2026 13:41 WIB, breadth showed 59 stocks rising and 86 falling out of 150 priced. Among notable movers, Alibaba Group (BABA) traded at USD 108.11 with a 2.75% decline and a strong 71% sell order activity, contrasting with Advanced Micro Devices (AMD) at USD 556.06, down 2.59% but with a majority 58% buy order activity. Marvell Technology (MRVL) also declined 2.74% to USD 238.56 with a near-even sell/buy split.

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