Sovereign debt yields continue to climb – is a debt crisis on the cards? - roger montgomery
Sovereign debt yields continue to climb – is a debt crisis on the cards? - roger montgomery
Source: roger montgomery
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DW NOTE
Sovereign yields rise when investors demand higher compensation for holding government debt — either because inflation expectations are climbing or because default risk is no longer theoretical. With the 10-year Treasury yield rising while the Fed holds rates at 3.75%-4.00%, oil at $105, and the US deficit at $2 trillion, the market is pricing the second risk, not just the first.