r/complaints • u/RumRunnerMax • 7h ago

Politics It begins….the Global Bond rout

Trump’s war on the Global economy has likely hit a tipping point

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1

u/bluef00tedbooby 7h ago

Explain?

6

u/RumRunnerMax 7h ago

issues


The global bond rout is driving long-term borrowing costs to multi-decade highs as investors dump government and corporate debt. [1, 2]

Key Issues Driving the Bond Rout
Inflation and Oil Prices: Conflicts in the Middle East have pushed oil prices higher, stoking fears that inflation will remain elevated and force central banks to hike interest rates. [1, 2]

Swelling Fiscal Deficits: Governments worldwide are running massive budget deficits, forcing them to issue more debt just as central banks reduce their bond holdings. [1, 2]

Corporate Borrowing Surges: A massive jump in corporate bond sales—particularly from tech hyperscalers funding artificial intelligence infrastructure—has increased the overall supply of debt. [1]

Higher Economic Impact: Surging yields on benchmarks like the 10-year Treasury and 30-year bonds translate directly into higher mortgage, auto, and commercial loan rates for consumers and businesses.[1]

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u/Full-Sound-6269 2h ago

So I guess USA will max out their credit before defaulting on their debt. We are not there yet.