Governments should heed the bond market’s warning
Financial repression is not a sustainable way to manage rising borrowing costs
Source: Financial Times
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DW NOTE
The FT wants governments to hear the bond market's warning. Fair enough. But which one? The warning that 10-year Treasuries still yield 4.73% with headline inflation at 3.53% and producer prices at 5.51%? Or the warning that despite a federal deficit running 3% higher than last year and 186 days of effective closure at Hormuz, real yields remain barely positive? The bond market isn't screaming discipline — it's whispering that someone will always buy if the alternative is holding claims on economies with even less credibility.