Posted 1/10/2024, 12:00:00 AM
Governments Face Mounting Debt Burdens as Rates Rise and Growth Slows
- Governments will flood bond markets with $2.1 trillion of new debt in 2024 to finance spending
- With central banks raising rates, governments must offer higher yields to attract investor demand
- Soaring debt levels could push up borrowing costs, creating a vicious cycle of deeper deficits
- Bond yields spiked after a ratings agency downgraded US debt, showing investors do care about fiscal policy
- Slowing global growth and higher interest rates make it harder for governments to service mounting debt piles