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Surging Treasury yields show America has no margin for error on its $31 trillion debt



In the days before the Memorial Day weekend, rates on 30 year Treasury bonds hit their highest level in 19 years at 5.2%, and the benchmark 10-year reached 4.7%, the top reading since mid-2007. If those kinds of yields take hold, the scenario for federal interest expense posited in the CBO’s “Budget and Economic Outlook: 2026 to 2036,” released in February, descends from dire to near-disastrous. Takeaway: America’s track to fiscal safety has lost all margin for error, and nothing demonstrates that better than the long-term impact of loftier than expected rates. America’s got so little room to maneuver that even yields that modestly exceed the CBO’s “baseline,” as the numbers compound in the years ahead, deliver a huge extra blow by crowding out big chunks of revenue that would otherwise go towards funding such essentials as Defense, Social Security and Medicare.

The CBO forecasts that yields on the 30 and 10-year Treasuries will respectively average about 4.65% and 4.15% through FY 2036. That’s roughly 55 basis points lower than the multi-year summit briefly notched in late May. Doesn’t sound like much of a difference, right? And if the interest expense on our gigantic and ballooning national debt of $39 trillion weren’t already running at nearly $1 trillion a year, bigger than Medicare spending and equaling two-thirds of Social Security outlays, the half-point upward shift would likely prove manageable.

But a recent report from the non-partisan Committee for a Responsible Federal Budget quantifies the deep damage even a continuation at the recent peaks would inflict. By 2036, interest expense would jump from absorbing 14% of all revenues to devouring 30%, five points more than under the CBO’s forecast. At $2.5 trillion, 2.5x today’s number, the carrying costs would become the second largest budget category, beating Medicare by one-third. Interest cost per household would soar from $7,900 last year to $17,000 a decade hence.

Much of today’s extreme vulnerability to even slightly higher rates arises from the need to both refinance existing debt, and shoulder trillions more in newly-issued bonds to cover deficits, at much higher cost. All told, the federal government will need to borrow almost $10 trillion in the next 12 months, equivalent to one-third our total debt. That amount consists of around $7.5 trillion to repay the Treasuries coming due, and $2 trillion for plugging the shortfall between revenues and spending. A major reason the U.S. accumulated so much debt in the first place was the lure of ultra-bargain yields orchestrated by the Fed’s easy money policy during and following the COVID crisis. In 2021 through early 2022, Treasury Bills, instruments that mature within a year, offered around a minuscule 0.2%. Today, that cost’s 18 times fatter at 3.7%.

Rates have also climbed for the Treasury Notes running 5 to 30 years that account for over half of all federal debt outstanding. Because we could borrow so cheaply for so long, the average rate on the Notes stands at just 3.23%. But the U.S. is refinancing the bonds that roll off for a lot more, 5.2% on the 30 year as of just before Memorial Day, and 4.7% on the 10-year.

In fact, the borrowing blowout that got the U.S. in so much trouble resembles the rush into “teaser” home loans in the 2007 runup to the housing meltdown; folks fell for temporary, super-low “teasers” rates that when they reset higher, saddled the borrowers with monthly payments they couldn’t afford. A similar dynamic’s at play as the U.S. refinances low-yielding Treasuries issued when it looked like a deal to finance huge government spending—at today’s much higher rates.

As of May 26, news that the Iran War may end soon pushed yields for the 30 and 10 year down slightly, so that they’re now sitting around 35 basis points above the CBO forecast. Still, the threat they’ll bounce back to the half-point-plus margin that’s so scary raises a stern warning for the new Fed chief Kevin Warsh. It’s encouraging that Warsh publicly favors tightening monetary policy by lowering the immense holdings of Treasuries on Fed’s balance sheet, a policy that involves unloading a big portion of its portfolio to the public. That gambit transforms trillions that would otherwise be spent into savings.

The Fed balance sheet shrink would also shrink what’s causing the problem: Extremely high “aggregate demand” across the economy that sends too many dollars chasing a volume of goods that’s growing far more slowly. (Noted economist Will Luther described this phenomenon in my recent story.) Warsh can also raise the Fed Funds rate, or even announce he has no plans for a reduction, to cool the still relatively-plentiful credit that’s fueling big spending by consumers and of course, humongous outlays for AI data centers. But the primary reason aggregate demand’s way too high is excessive levels of government spending that if left unchecked, could lead to even higher rates than the peak numbers that just unleashed such a jolt. Warsh can help by lifting the cost of credit to throttle both consumer and corporate spending, and sell bonds the Fed’s holding to target the latter. But he can’t control the big one, the runaway federal budget.

That responsibility falls on the President and on Congress. As the CRFB states in their analysis on the impact of rising yields, “The best way to accomplish these goals is through deficit reduction, which can help the Federal Reserve lower rates by reducing near-term inflationary pressures, put downward pressure on long-term rates by reducing economic crowd-out [that diverts money needed for budget must-pays to interest], and reduce the debt burden on which the government must pay interest.” The CRFB adds that yields that hang in the pre-Memorial Day range or push higher threaten to “spark a fiscal crisis.”

Nothing better illustrates that AMERICA IS BROKE than how an increase in yields that wouldn’t seem to matter much in most times could spell a cataclysm now that our fiscal state’s so fragile. Neither party wants to talk about how broke we really are, or do much to address the problem. Unfortunately, it may take an outbreak of unaffordable interest rates to force our lawmakers into facing the peril of their own making.

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Fixed mortgage rates head higher, with one silver lining for some borrowers




A recent spike in bond yields has lifted fixed-rate offers, but homeowners breaking a mortgage could see lower penalties, depending on their lender.

Walmart Business Offering $100 in Rewards During Small Business Month


Get Free Walmart Business+

Walmart Business is running a Small Business Month promotion that gives new Walmart Business+ members $100 in Walmart Business Rewards when they sign up for a paid membership. The offer is valid through May 31, 2026.

Walmart Business is Walmart’s platform designed for small businesses, nonprofits, schools, and other organizations, offering bulk purchasing, business-only pricing, multi-user accounts, and more. Let’s see the details.

Offer Details

  • Sign up for a new paid Walmart Business+ membership by May 31, 2026
  • Receive $100 in Walmart Business Rewards
  • Rewards are added within 14 days of signup. Rewards can be used toward future Walmart Business purchases
  • Current paid Walmart Business+ members are not eligible
  • Offer valid for new paid membership accounts only.

Walmart Business+ Core currently costs $98 per year, making this effectively a way to offset the first year membership cost while also receiving access to Business+ benefits.

Walmart Business+ Benefits

Business+ members receive:

  • Free shipping with no order minimum
  • Free store delivery on eligible orders over $35
  • 2% back in Walmart Business Rewards on orders over $250
  • Spend analytics and expense tracking tools
  • Business purchasing and account management features

Guru’s Wrap-up

This is a decent promotion for anyone who was considering signing up for a Walmart Business+ membership. Since the annual membership costs about the same as the $100 reward, the offer can mostly offset the first-year cost while giving you a chance to test the platform.

You can also get the consumer version of Walmart+ for free if you have the Amex Platinum or Business Gold cards (up to $12.95 plus applicable taxes, excludes any Plus Ups).

HT: DoC

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2027 HSA Contribution Limits Rise to $4,500 and $9,000


The IRS released the 2027 inflation-adjusted contribution limits for Health Savings Accounts (HSAs) and high-deductible health plans (HDHPs). Savers get a modest bump on both self-only and family coverage, along with a higher excepted-benefit HRA ceiling. See the full IRS notice here (PDF File).

Why it matters: HSAs remain the only triple-tax-advantaged account in the tax code — contributions are deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Higher limits mean more room to shelter income while building a long-term healthcare nest egg.

HSA Contribution Limit 2027

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The 2027 HSA Numbers

  • Self-only HSA contribution limit: $4,500 (up $100 from $4,400 in 2026)
  • Family HSA contribution limit: $9,000 (up $250 from $8,750 in 2026)
  • HDHP minimum deductible: $1,750 self-only / $3,500 family (up from $1,700 / $3,400)
  • HDHP maximum out-of-pocket: $8,700 self-only / $17,400 family (up from $8,500 / $17,000)
  • Catch-up contribution (age 55+): $1,000 (unchanged — set by statute, not indexed to inflation)
  • Excepted-benefit HRA cap: $2,250 for plan years beginning in 2027 (up from $2,200)

The percentage view: The self-only HSA contribution limit rises about 2.3%, and family contributions rise about 2.9%. Both increases track modest inflation readings, but smaller than the jumps savers saw in 2023 and 2024 when CPI was running hot.

How this connects: The College Investor has covered HSAs as part of the broader retirement and tax-advantaged account stack.

With the IRA contribution limit holding at $7,000 for 2026 and 401(k) deferrals climbing, an HSA can function as a stealth retirement account. A household maxing the family limit each year from age 30 to 65, with average market returns, can build a six-figure healthcare reserve by retirement.

Importantly, after age 65, HSA funds can be withdrawn for any purpose without penalty (though non-medical withdrawals are taxed as ordinary income, similar to a Traditional IRA).

The bottom line: If you’re enrolled in an HSA-eligible HDHP in 2027, update your payroll contribution election to capture the new limits. And don’t forget you can always top-up your HSA contributions until the tax deadline!

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The post 2027 HSA Contribution Limits Rise to $4,500 and $9,000 appeared first on The College Investor.

Universal Music rejects Bill Ackman’s $64B takeover bid


It’s official: Universal Music Group has rejected Bill Ackman’s takeover offer.

UMG’s Board of Directors said today (May 29) that it has “unanimously determined that the unsolicited and non-binding proposal” it received from Pershing Square Capital Management on April 7, 2026, is “not in the best interests of UMG, its shareholders, artists, songwriters, employees and other stakeholders”.

The Board said it has “taken the time to fully assess the proposal submitted by Pershing Square”.

It added: “After careful review with the assistance of outside financial and legal advisors, the Board has rejected the proposal because it fundamentally and materially undervalues UMG and will not deliver superior value creation. The Board has heard from many of UMG’s shareholders and other stakeholders and believes there is a strong consensus supporting the Board’s decision”.

Sherry Lansing, Chairman of the Board, UMG said: “UMG has built an unrivalled position in the music industry through clear vision and strong execution. The Board has full confidence in Sir Lucian and his team’s ability to deliver sustainable growth and continued value creation for all stakeholders.”

Credit: Austin Hargrave

“As we execute  our strategy and deliver maximum long term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”

Sir Lucian Grainge

Sir Lucian Grainge, Chairman and Chief Executive Officer, UMG added: “We remain committed to leading the industry by attracting the world’s top talent, deepening fan engagement globally, and driving innovation.

“Central to that mission is fostering an environment that champions human creativity, protects artists, songwriters, and entrepreneurs, and expands opportunities for growth and success.

“As we execute  our strategy and deliver maximum long term value, we look forward to providing shareholders with greater insight into the drivers of our performance and future direction of our business.”

The rejection comes two days after Cyrille Bolloré, Chairman and CEO of the Bolloré Group – UMG‘s largest single shareholder – publicly urged the company’s management to turn down the offer.

“I encourage the management of Universal Music to reject it,” Bolloré told the Bolloré Group‘s annual shareholders meeting on Wednesday (May 27).

“As far as I am concerned, it is as if it has been rejected.”

“We think the price is not there at all,” Bolloré said.

“He is not making an offer with his own money,” he added. “It is our money, the company’s money.”

At the meeting, Bolloré described the next five to six years as critical for UMG to capitalize on superfan subscriptions, live music, geographic expansion, and merchandising.

He acknowledged that Ackman “was a very smart investor” who had raised “interesting” points on cash allocation and the opportunities presented by AI.

Pershing Square‘s non-binding proposal, unveiled in April, valued UMG at approximately €55.8 billion ($64.4 billion), or €30.40 per share – a 78% premium to the company’s closing price on April 2.

Under the terms, shareholders would have received €9.4 billion in cash and 0.77 shares of new stock for each UMG share held.

The plan would have merged UMG with Pershing Square SPARC Holdings, with the combined company incorporating in Nevada and shifting its primary listing from Euronext Amsterdam to the New York Stock Exchange.

Ackman argued the move would unlock demand from institutional investors unable to buy non-US-listed securities.

UMG had put its own plans for a US secondary listing on hold in March 2026, citing turbulent market conditions.

The billionaire investor had also acknowledged that the deal hinged on Bolloré‘s support.

“Without Bolloré, we don’t have a transaction,” Ackman told investors when he presented the bid, adding that his first call before launching the proposal had been to the Bolloré Group.

Ackman described that initial response as “music to my ears.”


The Bolloré Group controls 28% of UMG via a direct stake in the music company plus its holding in Vivendi.

Pershing Square first acquired approximately 10% of UMG from Vivendi in the summer of 2021, and Ackman sat on the company’s board until May 2025.

Ackman has since sold down part of that position, including a 2.7% stake in March 2025.

Cyrille Bolloré stepped down from UMG‘s board in July 2025 to focus on his role at the Bolloré Group.

UMG generated revenues of €2.9 billion ($3.39 billion) in Q1 2026, up 8.1% year-over-year at constant currency.

Alongside those results, the company said it would sell half of its equity stake in Spotify, generating around $1.4 billion to help fund an expanded share buyback program.

Ackman‘s proposal had envisaged liquidating UMG‘s entire Spotify stake to help fund the cash portion of the bid.


Elsewhere in the statement today, UMG said: “As a company operating in a fast-evolving sector, UMG and its Board continuously assess the company’s business and financial strategy.

“The company recently initiated and subsequently expanded its buyback program, announced plans to monetize half of its Spotify equity stake, and announced it would provide the market with enhanced financial disclosure so that its business can be better assessed and understood. These are topics the Board and management have been considering for several months, and which will remain under continuous review.”

It added: “UMG has consistently led the industry, particularly since becoming a listed company in 2021. This has included pioneering an artist-centric approach to Streaming 2.0, underpinned by new agreements with digital service providers and leading the market in a responsible approach to the use of artificial intelligence. Also since listing, UMG has grown revenue by 60% and Adjusted EBITDA by nearly 70%(1), while sustaining healthy returns on equity. In 2025 UMG achieved a 33% share in recorded music, its highest share in 12 years, and a 24% share in music publishing, the highest share UMG has achieved since Music & Copyright started tracking market share in 2010. For the third consecutive year, in 2025 UMG artists held 9 of the top 10 positions on the annual IFPI Global Artist Chart.”

Citi is acting as financial advisor to the UMG Board of Directors, and Paul, Weiss, Rifkind, Wharton & Garrison LLP and De Brauw Blackstone Westbroek N.V. are acting as legal advisors to the UMG Board of Directors.Music Business Worldwide

Amazon vs. Microsoft: What Their Revenue Trends Tell Investors


Amazon: Managing Quarterly Revenue Volatility

Amazon (AMZN 1.28%) primarily generates its revenue through a vast network of online and physical retail sales, consumer subscription programs, and enterprise cloud computing services.

It recently launched a new supply chain service and faced an investigation into its planned Globalstar acquisition, while reporting an approximately 17% net income margin for the quarter ended March 31, 2026.

Microsoft: Steady Revenue Amid Restructuring

Microsoft (MSFT +5.25%) earns the majority of its revenue by licensing software products, selling hardware devices, and providing extensive cloud-based solutions to consumers and global enterprises.

It recently initiated a voluntary retirement program for a portion of its workforce and faced a new antitrust investigation in the United Kingdom, while reporting an approximately 38% net income margin for the quarter ended March 31, 2026.

Why Revenue Matters for Retail Investors

Revenue serves as the most fundamental measure of total incoming money before any operating expenses, taxes, or other costs are subtracted. It allows investors to evaluate raw business growth and the fundamental demand for a company’s core offerings.

Image source: The Motley Fool.

Quarterly Revenue for Amazon and Microsoft

Quarter (Period End) Amazon Revenue Microsoft Revenue
Q2 2024 (June 2024) $148.0 billion $64.7 billion
Q3 2024 (Sept. 2024) $158.9 billion $65.6 billion
Q4 2024 (Dec. 2024) $187.8 billion $69.6 billion
Q1 2025 (March 2025) $155.7 billion $70.1 billion
Q2 2025 (June 2025) $167.7 billion $76.4 billion
Q3 2025 (Sept. 2025) $180.2 billion $77.7 billion
Q4 2025 (Dec. 2025) $213.4 billion $81.3 billion
Q1 2026 (March 2026) $181.5 billion $82.9 billion

Data source: Company filings. Data as of May 28, 2026.

Foolish Take

Amazon and Microsoft compete in the cloud computing sector, with the former taking the top spot in terms of market share while the latter is number two. This part of their businesses is key for investors because it’s where their artificial intelligence offerings reside.

Although the bulk of Amazon’s revenue is generated by its e-commerce operations, which is why sales spike in the fourth quarter from holiday shopping, the growth in the company’s cloud computing business, Amazon Web Services (AWS), helped its stock soar to a 52-week high of $278.56 on May 5.

Amazon invested heavily to upgrade AWS infrastructure in support of AI. This helped it capture customer demand, resulting in AWS sales skyrocketing 28% year over year in Q1 to $37.6 billion. The segment’s expansion handily out-performed Amazon’s retail division, leading to overall revenue rising 17% year over year to $181.5 billion.

Microsoft is no slouch in its sales growth, as revenue increased 18% year over year to $82.9 billion in its fiscal Q3 ended March 31. The tech titan reported its AI business experienced an annual revenue run rate increase of 123% year over year to $37 billion in the quarter.

While Microsoft’s overall sales numbers are nowhere near Amazon’s, they reveal the company’s AI business is enjoying growth comparable to its rival. Q3 cloud revenue rose 29% year over year to $54.5 billion. Consequently, Microsoft and Amazon are both compelling stocks to gain exposure to the AI market.

[7/14] Chick-fil-A: Dress Like A Cow & Get A Free Entree


The Offer

Direct link to offer

  • Chick-fil-A is offering a free entree on 7/14 when you dress like a cow for cow appreciation day from 7:00 a.m. to 7:00 p.m. Can choose the following:
    • Breakfast: Chick-fil-A® Chicken Biscuit (Original) or 4-count Chick-n-Minis®.
    • Lunch/Dinner: Chick-fil-A® Chicken Sandwich (Original or Spicy); 8-count Nuggets (Original or Grilled); or 3-count Chick-n-Strips.
    • Kids: A 5-count Nuggets Kids’ Meal (Original or Grilled), which includes a side, drink, and premium.

Our Verdict

Images on the landing page show some pretty low effort outfits. I think you could probably get away with a white tshirt that had some black bits taped on. It being worth it will really depend on how bad the lines are. We will repost on 7/14. 

Unterwegs auf der Invest 2026: Sparquoten, Gehälter, Investmentstrategien & mehr!



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