Apollo Global Management’s chief economist Torsten Slok is drawing alarming parallels between current market conditions and the 2022 UK crisis that forced Prime Minister Liz Truss’s resignation. With Treasury yields reaching 4.6%, the markets face a complex challenge: mounting US debt concerns intersecting with potential Trump-era tax cuts. The situation is particularly concerning as the term premium – the extra yield investors demand for holding long-term debt – has hit its highest level since 2015. Slok emphasizes that about 80% of the yield increase since September appears driven by fiscal policy concerns, suggesting deep-seated market anxiety. This environment eerily mirrors the 2022 crisis that saw UK yields spiral, the pound crash, and pension funds nearly collapse. The potential impact extends beyond the bond market, as sustained high yields could significantly pressure equity markets, reminiscent of 2022’s 19% S&P 500 decline. The combination of these factors, alongside “higher for longer” interest rates, creates a precarious situation that could trigger widespread market instability.