US fiscal strain deepens as $40 trillion debt

Jefferies warns that US fiscal deterioration is a key risk for global markets, with higher Treasury yields pressuring equities and constraining Fed policy. Recent auctions show 10-year yield at 4.683%, highest since 2007, and 30-year at 5.216%, highest since 2001. Rising spending and weakening receipts add to the burden, with net interest and entitlement spending at 98.4% of receipts.