El-Erian Warns Global Bond Rout Will Persist Despite Treasury Intervention - streamlinefeed.co.ke
El-Erian Warns Global Bond Rout Will Persist Despite Treasury Intervention - streamlinefeed.co.ke
Source: streamlinefeed.co.ke
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DW NOTE
El-Erian is correct that intervention cannot fix what rising deficits and geopolitical risk have broken. The US ran a $1.4 trillion deficit through June — 3% higher year-on-year — while the Strait of Hormuz has been effectively closed for 189 days and oil supply fell by 10.1 million barrels per day in March. Treasury can buy bonds, but it cannot buy credibility when the fiscal trajectory and supply shock both point in one direction.