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EN
The Great Repricing of Sovereign Debt
['Masaaki Yoshimori']
Fair Observer
Britain’s 30-year gilt — a debt security issued to finance its spending and investments — touched 5.8% this summer, the highest since 1998.
Even the once-reassuring spread between Italian and French debt narrowed as markets reappraised the fiscal standing of Europe’s second-largest economy.
The result is a world in which sovereign bonds, once the unquestioned safe asset, increasingly trade like risky credits.
For more than a decade after the financial crisis, QE artificially depressed long yields.
Policy lessonsThe repricing of sovereign debt is not yet a crisis.
['investors'
'markets'
'yields'
'repricing'
'political'
'great'
'britain'
'long'
'higher'
'fiscal'
'structural'
'sovereign'
'debt']