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2025-09-15 10:31:32
[BlackRock: Global bond market concerns about fiscal crisis are exaggerated] Since the beginning of this year, the yields of longer-term sovereign bonds in countries such as the United States, Britain, France and Japan have risen sharply, making the yield curve one of the steepest levels in several years. But although this revaluation is often attributed to large government borrowing and fiscal deficits, Alex Brazier, global head of BlackRock's investment and portfolio solutions, believes that these global trends do not reflect market concerns about fiscal conditions, but rather market expectations of the neutral level of interest rates and the premium required to make investors willing to buy long-term bonds rather than short-term bonds. BlackRock believes that the neutral interest rate level is higher today than in the past, partly due to looser fiscal policies, but also due to factors such as high investment spending, especially investment in artificial intelligence.
