Long-Term Debt Punishment Forces a Shift in the Financing of Large Economies

El Pais

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Protectionist fears, growing public indebtedness, oversupply of bonds, and attacks on the independence of institutions such as the Federal Reserve are undermining investors’ confidence in sovereign debt, especially in the long sections of the curve. Sales have accelerated, driving profitability upwards and thus pushing prices downwards. Misgivings have forced many national treasures to adjust their financing strategies, prioritizing short-term i…