Governments sell bonds at record levels
Governments are experiencing a significant surge in sovereign bond issuance during 2026, with the total value of bonds sold reaching $504 billion since the beginning of the year—surpassing the amount raised in the first half of 2020 during the COVID-19 pandemic. This trend occurs amid rising public spending, particularly on defense, infrastructure, and clean energy, coupled with increasing bond maturities that require new financing, as well as growing investor demand for both short- and long-term bonds. The trajectory of these issuances depends on central banks' decisions regarding interest rates, with expectations of rate hikes from the European Central Bank and the Federal Reserve, amidst sustained strong demand for debt instruments in global markets.
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