Despite a tense global environment — with persistent inflation, geopolitical tensions, and heightened interest rate uncertainty — the U.S. economy remains broadly resilient. Households and small businesses still hold solid financial reserves, and consumer spending continues. While the labor market is showing signs of slowing, it remains robust, with few layoffs and ongoing hiring challenges.

However, confidence is collapsing. The University of Michigan’s consumer sentiment index has plunged to 50.8, its lowest level in three years. Households are expressing deep unease over the cost of living and the cumulative erosion of their purchasing power. Financial behavior is deteriorating: late payments are on the rise, credit card balances are maxed out, and mortgage refinancing rejections are soaring. The post-COVID "get-rich-quick" narratives are unraveling, deepening a sense of disillusionment.

This growing pessimism comes as the bond market undergoes a major shock. The latest auction of 20-year U.S. Treasury bonds failed, revealing a sharp drop in demand. At the same time, Japanese long-term yields have surged to 40-year highs — a historic rupture in a country long seen as a pillar of monetary stability.

The retreat of traditional buyers — Japan, central banks, and pension funds — is shaking the foundations of global public debt sustainability. U.S. long-term yields have surpassed 5% in a context devoid of strong growth or clear disinflation, forcing a fundamental reassessment of investment models.