In mid-August, while European investors reduced their stock market activity to enjoy the sun and beach during summer, the global bond market began sending warning signals not seen since the early stages of the Great Recession. The context was European summer holidays, but global markets showed significant concern.
On August 19, the yield on 30-year US Treasury bonds, considered the global benchmark for the bond market, rose to 5.3%, levels not recorded since 2007. This level represents the highest value in nearly two decades.
This phenomenon is related to the increase in public debt, which has become the new focus of tension in financial markets. International investors began showing growing concern about the sustainability of public finances in various developed economies.
The signals detected in the bond market are similar to those that preceded the Great Recession, which triggered alarms among financial analysts monitoring the evolution of sovereign debt worldwide.
