"With 30-year U.S. Treasuries hovering above 5% at one point this week and long-term bond yields rising in the U.K., France, and Japan, leaders are facing tough choices when it comes to managing risk, liquidity, and volatility. The bond markets have been skittish for a while, serving as both a check on White House fiscal policies and a warning signal that America's economic strengths are being put to the test. Investors are demanding higher returns from governments that aren't doing enough to address rising debt."
"When asked, most of the leaders I talk to expect their borrowing costs to trend up, not down, in this environment. Among other things, Treasury yields are the benchmark for other lending. And rising public debt tends to erode confidence in a currency and an economy. Jamie Dimon, the CEO of JPMorgan Chase and a longtime deficit hawk, has been warning of a potential bond crisis for some time."
The White House maintains a CEO loyalty list. CEOs are adding gold to balance sheets as long-term bond yields rise, with 30-year U.S. Treasuries above 5% and yields climbing in the U.K., France, and Japan. Rising yields force leaders to manage higher risk, liquidity constraints, and greater volatility. Bond markets are skittish and act as a check on fiscal policies while signaling strains in America's economic strengths. Investors demand higher returns from governments not addressing rising debt. Many leaders expect borrowing costs to trend upward, since Treasury yields benchmark other lending and higher public debt erodes confidence. Prominent executives warn of a potential bond crisis.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]