According to The Kobeissi Letter, the US government experienced $7.8 trillion in gross costs against approximately $5.0 trillion in revenue for FY 2024. This fiscal imbalance, where the government spends $1.56 for every $1.00 of revenue, contributes to the increase in total US debt by more than $13 trillion since 2020. This situation highlights potential risks for investors in US Treasury securities and could lead to volatility in related financial markets.

According to The Kobeissi Letter, Treasury Inflation-Protected Securities (TIPS) have been fairly rangebound since 2022, with inflation fluctuations and deficit spending being major concerns affecting their trading dynamics. The ongoing debt crisis adds further uncertainty to the market. Traders should monitor these factors closely.

According to Michaël van de Poppe, US Yields continue to rally and are nearing a new high at 5.00%, following the FED's 75bps rate cuts in 2024.