Rising Debt Fears as Central Banks Cut Back

🌊 'Debt Tsunami' Warning by Bloomberg
Bloomberg reports a potential 'debt tsunami' as bond yields rise and central banks reduce bond holdings.

📈 Soaring Sovereign Bond Sales
Next year might see an increase in bond sales due to growing budget deficits in developed countries.

🏦 Central Banks' Dilemma
Central banks like the US Federal Reserve are advised to reconsider reducing their balance sheets amidst these challenges.

💸 Record Treasury Issuance Expected
The US is anticipated to issue a record $1.34 trillion in Treasury bonds next year, with the deficit potentially hitting $2 trillion by 2026.

🔁 QE Reduction and Bond Value Impact
The US Fed has been cutting its balance sheet, raising concerns about the effects of tighter monetary policy combined with increased Treasury supply.

🇪🇺 EU's Growing Bond Sales
In the EU, major economies like Germany and France are expected to boost bond sales significantly.

🇬🇧 UK's Bond Market Pressure
The UK foresees a 20% increase in government bond supply next year, with the Bank of England reducing its bond portfolio rapidly.

🔮 Forecast: Tighter Monetary Conditions
Bloomberg suggests that the global growth slump in the next year might prompt a pause or reversal in monetary tightening policies.