High Deficits to Keep Developed Market Bond Issuance Elevated -- Market Talk
Dow Jones
Jun 26
1139 GMT - With developed market deficits high, volatility will likely continue and keep bond issuance elevated in the coming years, says Pimco's Peder Beck-Friis in a note. This is likely to push bond yields higher, the economist says. "When government debt climbs, investors tend to demand higher compensation to hold long-term bonds instead of cash or short-term bills," he says. These trends raise the risk of steeper yield curves, and investors should consider positioning for this scenario, he says. Different fiscal situations across countries create opportunities for relative value in global duration, he says. (emese.bartha@wsj.com)
(END) Dow Jones Newswires
June 26, 2025 07:39 ET (11:39 GMT)
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