With the national debt nearing $40 trillion, Bank of America has a warning for bond investors

The U.S. national debt is hurtling toward $40 trillion, and Bank of America Research strategist Michael Hartnett’s “Anything but Bonds” framework is becoming ever more applicable. Boiled down, Hartnett warns the U.S. is accumulating too much debt, which causes the government to issue too many bonds. Investors want compensation for the fiscal risk, making long-duration Treasuries unattractive compared to other assets. Here’s why the climbing debt makes the advice worth a listen.

The U.S. national debt stands at roughly $39.9 trillion in mid-August and is expected to cross the $40 trillion threshold as early as this week. According to the Treasury’s official data, the government’s outstanding debt is made up of both intragovernmental holdings and debt held by the public.