> It’s absolutely a risk premium

It's objectively not–that's what CDS measure.

> higher inflation expectations

Not reflected in the data [1].

We can reasonably debate if investors should treat the U.S. as a riskier credit. But these auctions, CDS data and other funding rates for high-quality non-U.S. dollar-denominated credits (e.g. Saudi Arabia's dollar-denominated debt [2]) do not show what the article implies they do.

[1] https://fred.stlouisfed.org/series/T10YIE

[2] https://live.deutsche-boerse.com/bond/xs2747599509-saudi-ara...

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toomuchtodo 9 hours ago | parent [-]

Forgive me if I defer to the bond market and treasury auction data. The data shows a path to a potential debt spiral and crisis based on yields demanded and debt outstanding. Current annual debt servicing expense is already ~$1T/year.

https://www.pgpf.org/programs-and-projects/fiscal-policy/mon...

	▲	JumpCrisscross 9 hours ago \| parent [-]
		> Forgive me if I defer to the bond market and treasury auction data TIPS are Treasuries. The breakeven-inflation rate is calculated entirely from Treasuries. > data shows a path to a potential debt spiral and crisis based on yields demanded and debt outstanding Sure. The data also–unambiguously–show that Treasury prices are not pricing in a U.S. default or runaway inflation.