Bond markets are becoming the centre of the macro story
The Polish source argues that the global economy has entered a more dangerous phase, where the rapid rise in public debt is no longer just a long-term concern for economists. It is now starting to dictate the conditions under which financial markets trade.
For years, developed governments were able to roll over debt in a low-rate world with little immediate market resistance. That backdrop has changed. Higher policy rates, pandemic-era borrowing and energy-crisis spending have left many national budgets more exposed to the cost of servicing debt.
That makes sovereign bond auctions a more important signal than they used to be. Government debt was once treated as the safest corner of the market, but weak demand or rising yields can now become a source of volatility in its own right.
US T-Note 10 YR cash chart from the Polish source article, as of 20 May 2026. The source chart retains Polish platform labels.
Higher yields can tighten conditions across markets
The mechanism is straightforward. When governments need to offer higher yields to attract capital, bond yields rise and the discount rate applied to other assets also moves higher. That can put pressure on equity valuations, particularly in technology and innovation-heavy sectors where investors are paying for future cash flows.
