US Treasury yields are soaring due to robust economic growth, revised higher short-term rate expectations, and increased term premia. However, deeper concerns loom. The US faces an unsustainable fiscal path with escalating debt service costs, compounded by defense spending and tariff-induced revenue shortfalls. Fears also exist regarding the Federal Reserve's independence, potentially unanchoring inflation expectations and boosting risk premia. This creates a self-reinforcing cycle where higher deficits drive interest rates further up. The text warns of "bond vigilantes" emerging if confidence wanes, echoing Rudi Dornbusch's view on financial crises.