Global debt interest rates have reached record levels, generating concern in financial markets. This increase foreshadows a possible rate hike by central banks, which could severely impact the stock market.
Financing costs have skyrocketed as debt interest rates hit new highs worldwide, according to expansion.com. This phenomenon occurs against a backdrop of inflationary tensions and ahead of significant central bank meetings.
In particular, Japan has recorded a significant milestone, reaching the 3% barrier on its ten-year debt interest, a level not seen since 1996. The Bank of Japan is expected to announce a rate hike at its meeting on September 18.
In the eurozone, the European Central Bank is expected to raise rates by 25 basis points on September 10, in response to an inflation increase that reached 3.3% in August. The yield on the German bund has surpassed 3.35%, indicating a rise in financing costs.
The United States is not lagging behind, with the ten-year bond interest approaching 4.80%, prompting the Treasury to activate a debt buyback program to control the situation. The next Federal Reserve meeting will be on September 16, where a rate hike could be decided, something that has become more likely following recent statements from its chairman, Kevin Warsh.
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