Al-Aryan anticipates bond sell-offs and rising yields
Economist Mohamed El-Erian expects the wave of selling in global government bonds and rising yields to continue, due to the lack of strong appetite in the United States for immediate fiscal tightening, which is putting upward pressure on yields. He emphasized that investors are under pressure and that trusted holders of U.S. Treasury bonds are becoming less able to withstand the shifts, as demand from countries like Japan and China diminishes. He pointed out that several G7 countries, including the United Kingdom and France, are facing sovereign debt issues that are affecting the bond market. Moreover, the shift in European bond yields is attracting market interest, with current focus on France and Italy rather than Italy alone, due to changing financial and political dynamics.
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