Debt at all levels (government, student, mortgages, personal) is very high. This is a worrisome backdrop in view of the inverting yield curves.
Any stock market downturn and a corresponding deterioration in the ‘wealth effect’ could spark a sell off. Of course, the Fed could always lower rates again and the trade tariff situation could improve, but stocks are still at high valuations and it wouldn’t take much to trigger a “risk off” sentiment.
If government debt was truly worrisome to investors, then they’d demand HIGHER interest rates on long-term debt. What’s happening here is the exact opposite.