The Bond Market at the 5% Threshold

5% debt isn't "expensive", it's back to the pre-GFC normal, as their own Figure 1 shows. Arguably a lot of the nonsense in how resources have been spent since 2008 is due to the fact that the cost of money was too low. Getting back to the pre-GFC normal will, no doubt, be painful as a hangover. It doesn't mean "hair of the dog" would be a good idea.