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Repeat after me, people. Watch the bond market from American public media. This is Market.

In Los Angeles, I'm Kyle Rizdahl. It is Wednesday, today 21 May. It is always to have you along, everybody.

You know, the politics of whatever's happening inside the House Republican caucus about the big

tax cut bill they're working on, that is, thankfully, somebody else's story to cover.

The economics of it, though, is smack in our sweet spot, and we will begin

today with the observation that adding, according to the nonpartisan congressional budget office,

$3.8 trillion to the national debt and deficit over the next decade, has the bond market more than

a little bit concerned? The yield on the 10-year treasurer note

hasn't been this high since February. It's up half a percentage point since early April,

which I know doesn't sound like a lot, but in bond market speak, is a boatload. So marketplace,

Justin Ho is going to get us going by explaining the mechanics of what's going on and, more importantly,

why it matters.

The Federal Reserve controls plenty of interest rates, especially short-term interest rates on government bonds.

But rates on long-term treasuries, as in seven or ten or thirty-year bonds, those are

determined by the market, by supply and demand.

Definitely supply right now is front-center.

Randy Vogel is head of fixed income at Wilmington Trust.

He says the bond market is concerned that the GOP's tax and spending package will pile on debt,

...