Public Debt: Rising Interest Rates Fuel Concern About Sovereign Debt Crisis
7 Articles
7 Articles
While the government is already working on particularly hectic measures to respond to the slippage of the public deficit, the explosion in the cost of debt is still forcing its room for manoeuvre.
Investors charge governments, including France, for doubts about their ability to return to a balanced budget. Speculative behaviour has also contributed to the sharp surge of interest rates in recent days.
Interest rates on sovereign debt have risen to the highest level in 15 years. This puts highly indebted euro countries under pressure. And also Germany is now noticeably meeting the turnaround.
Governments remember the high cost of borrowing with an almost global upturn in long-term returns. Investors recover a pressure capacity in large sovereign debt markets that during the years of minimum rates had been left in the background. The United States already pays more than 5% in its 30-year debt, the highest level since 2007; Germany and France face long-term returns that have not been seen since the euro crisis; and Japan has moved at u…
The record German debt has skyrocketed this Wednesday to a high of 15 years in its references to 10 and 30 years, according to The Guardian. The German Ministry of Finance has attributed the movement directly to the increase in defense spending following the Russian invasion of Ukraine. I followed the session on Wednesday with attention because the rebound of the bund is not an isolated episode. The sovereign returns of other big Western economi…
Is the debt storm really breaking over Japan? Or is another candidate, possibly France, pushing himself into pole position in this destructive race to the bottom?The post Rising bond rates threaten the foundation of financial architecture first appeared on Tichy's insight.
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