\u201cWorld governments are issuing more debt than ever,\u201d commented the Kobeissi Letter over the weekend.<\/p>\n
Global sovereign bond issuances hit a record $18 trillion last year, and $16 trillion of that debt was issued by developed countries.<\/p>\n
Additionally, global government bond issuance has nearly doubled since 2019 on an unsustainable debt trajectory, it noted.<\/p>\n
\u201cHistorically high public spending on social programs and defense, new tax and spending policies, as well as elevated interest rates, have been behind this massive surge.\u201d<\/p>\n
World governments are issuing more debt than ever:<\/p>\n
Global sovereign bond issuances hit a record ~$18 TRILLION in 2024.<\/p>\n
~$16 trillion of debt was issued by developed countries, and ~$2 trillion by emerging market economies.<\/p>\n
World government bond issuance has nearly DOUBLED\u2026 pic.twitter.com\/X0QxXwtdIo<\/a><\/p>\n \u2014 The Kobeissi Letter (@KobeissiLetter) June 7, 2025<\/a><\/p>\n\n Government bonds are a way for nations to raise money by issuing interest-earning debt securities to finance public spending.<\/p>\n As debt surges, more of it needs to be refinanced, which means more bond buyers are needed, which puts pressure on the bond markets.<\/p>\n On June 6, the Financial Times reported<\/a> that investor demand for long-term government debt is weakening, as evidenced by recent auctions of 20-year bonds in Japan and the US, which were poorly received, triggering sharp price drops and rising yields.<\/p>\n Prominent investors such as BlackRock\u2019s Larry Fink and billionaire hedge fund manager Ray Dalio warned of unsustainable deficits, especially in the US, which is considering a $2.4 trillion debt increase, prompting fears of a path to insolvency.<\/p>\n Long-term bond yields serve as benchmarks for corporate debt, and higher yields will raise borrowing costs for businesses, risking growth. Additionally, a debt market dominated by hedge funds and short-term players may become<\/a> more volatile.<\/p>\n Store-of-value assets like Bitcoin could benefit significantly from the unfolding global bond market strain and loss of faith in sovereign debt.<\/p>\n If government debt becomes less attractive due to high yields, poor auction performance, and credit rating downgrades, investors may seek alternatives<\/a> to store capital.<\/p>\n Governments may also increasingly rely on inflation to erode the real value of debt, and BTC has often been considered an inflation hedge.<\/p>\n Being non-sovereign and decentralized, Bitcoin also offers a parallel financial system that is immune to political manipulation or debt monetization.<\/p>\n As countries and investors diversify away from US Treasuries and the dollar, Bitcoin could also be part of a new neutral reserve asset basket, especially in emerging markets.<\/p>\n The asset was holding steady at around $105,500 at the time of writing, having recovered from its Friday dip<\/a> to $101,000.BTC has gained more than 50% over the past 12 months.<\/p>\n The post World Governments Are Issuing More Debt Than Ever, Will Bitcoin Benefit?<\/a> appeared first on CryptoPotato<\/a>.<\/p>","protected":false},"excerpt":{"rendered":" \u201cWorld governments are issuing more debt than ever,\u201d commented the Kobeissi Letter over the weekend. Global sovereign bond issuances hit a record $18 trillion last year, and $16 trillion of that debt was issued by developed countries. Additionally, global government bond issuance has nearly doubled since 2019 on an unsustainable debt trajectory, it noted. \u201cHistorically […]<\/p>\n","protected":false},"author":0,"featured_media":72724,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-72723","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/72723"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=72723"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/72723\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/72724"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=72723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=72723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=72723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}More Debt More Bonds<\/h2>\n
Bitcoin The Beneficiary<\/h2>\n