Meanwhile, this year alone, the United States has $9.2 trillion of debt maturing, as per Investors Observers report. The US' debt-to-GDP level is now almost reaching 130%, and fear is growing after Moody's Ratings slashed the nation's credit rating last week, as per the report. The credit rating downgrade pushed US Treasury yields up, with the 30-year rate rising to 5.037%, nearly to levels last witnessed in 2007, according to the report.

ALSO READ: Greenland dumps Donald Trump, signs lucrative minerals deal with Europe in a major blow to the presidentInvestors are growing uneasy of US debt, as witnessed during a recent $16 billion auction for 20-year US Treasury bonds that saw disappointing demand, drawing parallels to Japan’s own recent bond struggles, according to Investors Observers.Chief investment officer at Bleakley Financial Group, Peter Boockvar, said, “We’re not out of the global bond woods,” adding, “Countries with excessive debt and no plans to control it are being watched more closely by the global bond police,” as quoted in the report.The crisis in the US could worsen if Japan, which has around $1.3 trillion in US Treasuries, chooses to unload some of those holdings to stabilise its own economy, as per the Investors Observers report. That would drive the United States to face an even bigger supply shock, sending yields higher and prices lower, according to the report.
Prime Minister Shigeru Ishiba warned Japan’s finances were “worse than Greece,” spooking investors and triggering a major sell-off.

It signals global concern about heavily indebted nations, and the United States is also carrying massive debt.