BusinessQuiet 70d · day 72
El-Erian warns global bond sell-off likely to continue amid fiscal concerns
Renowned economist says U.S. Treasury intervention went too far and traditional bond buyers are becoming unreliable.
What to know
- El-Erian attributes continued bond sell-off to a structural imbalance between issuance and available buyers, not primarily to inflation concerns.
- Traditional bond purchasers—China, Japan, Gulf states, and Norway's sovereign wealth fund—are becoming less reliable, signaling a shift in global debt dynamics.
- Three G7 countries face particular vulnerability: the U.K., Japan, and France, with France emerging as the new focal point in European bond markets.
“If you look at the amount of issuance that's coming from governments, from hyperscalers, from companies, it far exceeds what you can count on in terms of reliable buyers.”
Mohamed El-Erian, Economist · CNBC · Sep 3
Mohamed El-Erian Economist and Allianz chief economic adviser
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