Global Shock
Joe Blogs
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Global Shock
47 374 просмотра · 19 часов назад
Joe Blogs
476 тыс. подписчиков
47 374 просмотра · 19 часов назад
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Something significant is happening in the global bond markets — and this is becoming much bigger than simply another move in US Treasury yields.
US government borrowing costs have surged, recent Treasury auctions have shown signs of softer demand, and some hedge funds have been reducing their enormous leveraged Treasury trades. At the same time, rising Japanese bond yields are changing the calculation for investors who have traditionally sent huge amounts of money overseas.
But there is another problem developing.
American companies face around $4.3 trillion of bond maturities between 2027 and 2031, while the artificial-intelligence boom is creating an extraordinary new demand for capital. SoftBank has just raised around $11 billion in a record-breaking high-yield bond deal, with some of its debt offering yields approaching 10%.
So governments need money. Companies need money. AI needs money. Existing debts need refinancing. And investors increasingly want to be paid more for providing that capital.
In this video, I bring all of these developments together and look at why this growing competition for money could keep borrowing costs higher — and what that could mean for US Treasuries, corporate debt, mortgages, stock markets, AI investment and the wider global economy.
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