Investors are walking away from US government bonds, which is bad news for anyone borrowing money in America and for the bondholders already sitting on deep losses.

• Confidence in US Treasuries is the weakest since 2007, with China, Canada and France cutting their holdings and small investors selling too.
• Long-term bond funds have lost more than half their value since 2020, so credit cards, car loans and business borrowing all get pricier.
• The Iran conflict is the engine: oil jumped back above $100 after the US sent 10,000 more troops, and markets now expect the Fed to raise rates in December.
• Scott Bessent is leaning on allies instead of cutting spending — pressing the EU to dump diesel reserves to cool prices, which leaves Europe thin going into winter.
• Trump says South Korea will put up to $200 billion into US energy projects, including an Alaska gas pipeline most experts call too costly to work.

Outlook: With the war still driving deficit spending, bond yields look set to keep climbing and gold buying to keep rising even on price dips.