Long-term debt issuance is becoming increasingly costly for investors globally. Rising interest rates are impacting borrowing costs for governments and corporations. This is a result of a persistent inflationary environment, which forces central banks to raise rates. The phenomenon is being observed in several major economies, including the United States. Financial institutions are closely monitoring the situation, projecting potential effects on economic growth. The market’s response is anticipated to be significant and will influence investment strategies.
Credits: Finance & economics