Global Debt Surge Raises Alarms Over Economic Stability

The Bank for International Settlements warns of destabilized bond markets as government borrowing rises and fiscal concerns grow.

The Bank for International Settlements (BIS) cautions that unchecked government borrowing poses a significant threat to global financial stability.
Sovereign bond yields in major economies, including the US, UK, and eurozone, have risen due to increasing debt supply and inflation concerns.
France's government collapse and the US's projected $8 trillion debt increase under Donald Trump's proposed tax cuts amplify market anxieties.
A supply-demand imbalance in the US Treasury market is leading to record unsold government debt, with investors reducing allocations to long-term bonds.
The BIS emphasizes the urgency for policymakers to act, warning that delays in addressing fiscal challenges could trigger market disruptions with global repercussions.