You can carry a mountain of debt when money is cheap. At 5% plus, the mountain starts sending you a bill every year.
Global debt tops $365 trillion as economists sound alarm over ‘vicious cycle’
Ever-higher costs to service mounting debt loads pose a major risk to governments around the world, economists have warned.
Global debt rose by $10 trillion in the first half of the year to top $365 trillion, according to research published by the Institute of International Finance on Wednesday.
The Washington-based group found that advanced economies paid over $3.3 trillion in interest on internationally traded government bonds last year, more than global spending on AI ($2.6 trillion), defense ($3.1 trillion), or clean energy ($2.3 trillion).
The yield on the 30-year US Treasury bond climbed more than 3 basis points to 5.444%, its highest since 2004, as prices fell.
US and global yields jumped on Wednesday after data pointed to strong US growth and rising inflation pressures, causing traders to increase their bets on Federal Reserve rate hikes.
Bonds around the world have been under pressure for months as the U.S.-Israeli war on Iran has pushed up energy prices, growth has proved resilient and investors have fretted about high levels of government debt.
Japan’s 10-year yield hits a 30-year high
TREASURY RATES HIT 22-YEAR HIGH
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