Government debt across the major economies jumped during Covid and has never returned to pre-Covid levels, with deficits now running at close to full employment and interest payments taking a meaningful share of spending. In this month’s Market Insight, we assess why reform is more likely to be forced by bond markets than chosen by governments, and whether today’s elevated long-term yields are already pricing that in.
Government debt across the major economies jumped during Covid and has never returned to pre-Covid levels, with deficits now running at close to full employment and interest payments taking a meaningful share of spending. In this month’s Market Insight, we assess why reform is more likely to be forced by bond markets than chosen by governments, and whether today’s elevated long-term yields are already pricing that in.
Government debt across the major economies jumped during Covid and has never returned to pre-Covid levels, with deficits now running at close to full employment and interest payments taking a meaningful share of spending. In this month’s Market Insight, we assess why reform is more likely to be forced by bond markets than chosen by governments, and whether today’s elevated long-term yields are already pricing that in.
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