The Globe and Mail reports in its Friday, May 22, edition that the bond market is making headlines. The Globe's Matt Lundy writes that this week, the 30-year U.S. Treasury yield hit 5.2 per cent, its highest in 19 years. In contrast, Canada's 30-year bond yield remains somewhat muted at around 4 per cent, a level it hasn't seen much since the 2008 financial crisis. Simply put, it's getting costlier for governments to borrow money. The bond market is affected by various factors such as tax-and-spend policies, inflation outlook, monetary policy and demographics. Even before the Iran war increased inflation, many countries were planning to borrow significantly for defense spending. But lately, economists have flagged their concerns with huge and persistent deficit spending, particularly in the United States. Desjardins's Royce Mendes says, "With rate cuts no longer in the cards, war ongoing in the Middle East and governments finding it difficult to rein in spending, investors appear more concerned about fiscal pressures." Barclay's Ajay Rajadhyaksha says: "The story right now is simple and uncomfortable. The developed world has too much debt, too little fiscal discipline and no political appetite for fixing either."