President Donald Trump’s controversial tariffs have emerged as a saving grace for the U.S. in the recent global bond market turmoil.
Global Government Debt Surges Past $97 Trillion Mark
The tariffs, initially a cause of concern for financial markets, are now being viewed as a crucial element of Washington’s financial stability. This shift in perspective has helped the U.S. avoid the worst of the recent government bond market sell-off, reported The Washington Post.
As government debt continues to rise in developed economies like the U.K., France, and Japan, investors are seeking higher yields on long-term bonds issued by these countries. Global government debt has surged past $97 trillion—double its 2010 level—driven by pandemic-related spending and recovery measures, outpacing corporate and household borrowing, according to the Institute of International Finance.
Despite the U.S. public debt reaching a record $30 trillion, investors have remained relatively optimistic about U.S. treasuries. The yield on …