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Global bond selloff lifts borrowing costs as yields rise
The outlet cites a forecast that governments could spend 8.0% of tax revenues on net debt interest this year.
ETF Trends says fixed income markets worldwide, including the U.S. bond market, have been shaken by a global bond sell-off that has pushed yields higher.
The outlet links the sell-off to ongoing inflation concerns and central banks keeping monetary policy tight, which has helped keep interest rates elevated and bond yields up.
With higher rates, ETF Trends notes that some governments face difficult borrowing conditions when issuing public debt, raising the burden on national debt.
Citing The Economist, ETF Trends adds that governments were forecast to spend 8.0% of tax revenues on net debt interest this year, citing pressures from aging populations and the threat of war.