Treasury sell-off piles pressure on weakest US borrowers

A Treasury sell-off is increasing pressure on the weakest US borrowers as yields reach multi-year highs. Spreads on the riskiest junk debt have climbed to their highest levels since the market meltdown following last year's liberation day tariff blitz. These rising Treasury yields are straining weaker borrowers, which increases default risks and complicates refinancing efforts. Current policy measures are providing limited relief to those affected by the volatility in the US debt markets.