The BlackRock Debt Strategies Fund, Inc. (DSU) is experiencing downward pressure due to rising bond yields, driven by a resurgence of "bond vigilantes" who are selling fixed income products. This trend is fueled by higher inflation, robust economic growth, and increased government debt issuance, particularly in the U.S. and U.K. The U.S. 30-year bond yield has notably risen by about 100 basis points since the Federal Reserve's recent rate cut, indicating market concerns over fiscal sustainability and the potential for prolonged inflation. Additionally, the uncertainty surrounding future central bank policies and fiscal deficits is contributing to the upward pressure on yields, making bonds less attractive and impacting funds like DSU that are heavily invested in debt instruments.
The current price of DSU is $10.78, reflecting a 0.72% decrease from the previous close.