Global debt rises non-U.S. bonds weaken

Reports indicate that the world is drowning in debt exceeding $350 trillion, along with mounting pressures on the international bond market. Although the 30-year U.S. Treasury bonds have reached an approximate yield of 5.34%, foreign markets are facing more severe losses due to credit risk, inflation, and political factors. The United States holds a relative advantage in the bond market because it is the primary reserve currency, has the deepest market, and the central bank's higher capacity to provide liquidity. In contrast, some European countries like France and Britain face significant challenges; notably, their long-term bond yields have surpassed Italy's, with France's debt reaching around 117% of GDP, posing future financing difficulties. Meanwhile, Japan struggles with rising bond yields amid a weakening yen. Overall, non-American bonds have become more fragile, facing a scarcity of funding and high risk premiums, which increases the likelihood of future financial crises.

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