US and European government bond yields continued to surge during Thursday morning trading, bringing US borrowing costs close to a 24-year high. At the same time, France’s public debt market saw mounting sell-off pressure amid concerns that the budget deficit would be difficult to control.
This development directly threatens global financial sustainability, as French public debt risks reaching 130% of GDP by 2027. In addition, the $1.8 trillion private credit market is facing a wave of costly refinancing, pushing corporate default rates to 3–4%.
Record-high interest rates are tightening liquidity across all traditional investment channels. Capital is tending to flow out of risky assets in search of safety in risk-free instruments offering attractive yields.
For the crypto market, pressure from global bond yields will limit new inflows into risky assets such as $BTC . However, if the sovereign debt crisis and risk of credit defaults spread, cryptocurrencies could become an alternative long-term safe haven. 📊
#BondYields #MacroEconomy #DebtCrisis
This development directly threatens global financial sustainability, as French public debt risks reaching 130% of GDP by 2027. In addition, the $1.8 trillion private credit market is facing a wave of costly refinancing, pushing corporate default rates to 3–4%.
Record-high interest rates are tightening liquidity across all traditional investment channels. Capital is tending to flow out of risky assets in search of safety in risk-free instruments offering attractive yields.
For the crypto market, pressure from global bond yields will limit new inflows into risky assets such as $BTC . However, if the sovereign debt crisis and risk of credit defaults spread, cryptocurrencies could become an alternative long-term safe haven. 📊
#BondYields #MacroEconomy #DebtCrisis