Illustration: María Jesús Contreras
The Big Take
The Bond Market Rally Is Overlooking a Soaring $2 Trillion Debt Problem
Investors are ignoring the cloud of rising deficits around the world.
Right around the start of November, two words suddenly disappeared from the chatter in the bond market: debt supply. As bond prices surged across the developed world day after day, sending yields tumbling and handing investors some much-needed profits, the angst about soaring budget deficits melted away.
But for how long?