Global Debt Crisis Looms as Long-Term Yields Surge
Update: 2025-12-05
Description
Global markets face a looming debt crisis as short-term interest rates plummet, yet long-term yields surge, indicating investor wariness of government debt. Japan, in particular, is grappling with this issue, as Prime Minister Sanae Takaichis spending package led to a record high ten-year bond yield. Economists warn of a potential Japan sell-off, causing a triple decline in stocks, bonds, and the yen. This trend is not isolated to Japan, with countries like the US, France, Italy, the UK, and Germany experiencing similar patterns. The IMF predicts Japans interest payments could double by 2030 and quadruple by 2036, signaling a volatile new debt environment.
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