Fed's Barkin warns of eventual reckoning over U.S. debt

Richmond Fed President Tom Barkin says there will eventually be a reckoning over rising U.S. debt.
His concern is that if debt continues climbing, investors could eventually become less willing to absorb additional Treasury issuance at current prices.
That would put upward pressure on yields and make financing the federal government even more expensive.
For $UST, the long-term risk is not simply the size of the debt, but whether demand remains strong enough to keep funding costs manageable.