The Big Problem With Government Debt Isn’t What You Think

Investors are worried that Western governments are issuing more bonds than investors can buy. Whether the system that transacts in those bonds can bear the load could be a much more urgent issue.

Last week, the U.S. Treasury Department said it would issue longer-term debt. Ten-year and 30-year government-bond yields, which had recently touched 16-year highs, have since fallen sharply.