On August 20, Mohamed A. El-Erian published a New York Times opinion piece on the surge in U.S. government borrowing costs. He explains why this is no ordinary bond-market sell-off, pointing to four new forces at play – massive AI-driven corporate borrowing, the retreat of traditional foreign buyers of Treasuries, a surge in real yields, and spillovers into allied sovereign debt markets – and argues that the traditional mechanisms that once tamed soaring rates will not function efficiently today.
Read the article HERE (a login to The New York Times is required).