Source: Wei Li (Blackrock) | Link

As more hyperscalers tap the bond market - including international capital and very long dated - to finance capex, some context helps:

Competition for capital has…

Ultimately, history shows the solution might be a more permanent devaluation. > The Roman Empire serves is the archetypal example of what lies ahead. By the late second century, Rome faced rising military costs to defend its vast borders, while the tax base stagnated. Rather than cutting spending, Emperors began shaving coins or diluting the purity of the denarius. Under Augustus, the coin was nearly…

"U.S. Treasuries long carried a “convenience yield” – a premium investors paid for the liquidity and safety of dollar assets compared with other high quality sovereign bonds."

"Over the past decade, that gap has evaporated, shrinking from nearly 80 bps to roughly 0 when adjusting German bund and Japanese government bond yields hedged back into dollars using maturity-matched cross currency…

#Dollar #Bonds #Instability #Geo-Economics