business π Global debt crisis brewing? π¬
Markets are shifting from a good to a bad fiscal equilibrium following the COVID pandemic. This trend is visible across G10 economies, with US 10y10y forward yields hitting a 20-year high. Three factors drive this: post-COVID debt binges, unmoored fiscal policy, and heightened geopolitical risks. Consequently, pressure on central banks to cap yields is increasing. This suggests safe havens like gold will continue to see strong demand.