AI Data Insight
According to the latest data, the YoY growth rate of U.S. government spending strongly rebounded from -8.55% in the previous month to surge to 23.35% in May 2026. This spike was primarily driven by the heavier interest burden on national debt, catch-up progress in mandatory welfare expenditures, and geopolitical defense spending. Intertwined with expansionary fiscal policy and a high-interest-rate environment, the upward pressure on government bond yields has intensified, and the market must be wary of the crowding-out effect and sticky inflation risks.