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Global Financial Experts Warn of Rising Treasury Debt and Bond Market Instabilities

Experts cite increasing deficits, rising debt service costs, Congress's dysfunction, Federal Reserve's wind down policy, and high profile investors shifting strategies as signs of a potential financial bubble; US Treasury needs to refinance $17 trillion in the next two years.

  • The U.S. Treasury faces the challenge of refinancing up to $17 trillion of its existing debt within the next two years amid a 'higher for longer' interest rate environment.
  • HSBC's Noel Quinn warns of a potential 'tipping point on fiscal deficits' for several countries, stating that when it arrives, it will happen quickly.
  • The shadowy 'term premium', which represents the risk premium for holding long-term bonds, is at an eight-year high, indicating rising uncertainty in the market.
  • High profile investors like Bill Ackman and Bill Gross are revising their strategies; Ackman is covering his short position on longer-term Treasury bonds, influencing market sentiment.
  • Amidst rising geopolitical uncertainty, bonds offer a secure investment option, regardless of differing economic views, especially with yields at double since last year.
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