US fiscal deficit, rising Treasury yields emerge as key risks for financial markets: Jefferies

US debt tops $40 trillion: Chris Wood flags the 5% trigger that could rattle stock market

US debt topped $40 trillion as 10-year yields neared 5%, the threshold strategists flagged as equity risk. Yields above 5% threaten AI infrastructure valuations and force foreign portfolio rebalancing; Japan's $1.12 trillion Treasury position especially vulnerable.