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An $8 Trillion Spree Sets Clock Ticking for Bonds’ Judgment Day

  • Debt spree may overwhelm market if central banks step back
  • Fiscal splurge risks an ‘inflationary world’: Aberdeen’s Athey
Electricity Usage in Sydney As Energy-Rich Australia Ends Up With World\'s Priciest Power
Photographer: Cole Bennetts/Bloomberg

Global bond buyers may only have a year until the good times run out.

A multi-trillion dollar wave of government debt sales has -- so far -- found seemingly endless support as nations around the world raise cash to fight the economic hit of the coronavirus. The U.S. sold a record amount of debt at auctions this week, a German long-dated offering drew the strongest demand since 2012, and the U.K.’s first-ever syndicated 10-year sale received seven times as many bids as needed. Meanwhile, Australia raised the equivalent of $12 billion in its biggest-ever offering.