Sovereign debt costs to double by 2025

Janus Henderson Group's Jim Cielinski. (Image: JHG)

Fri, 05 May 2023

By Greg Ritchie Sovereign debt costs are expected to double over the next three years, putting governments increasingly at the mercy of bond investors, according to Janus Henderson Group.Government interest costs are set to hit US$2.8 trillion (NZ$4.4t) by 2025 as interest rates rise, constraining fiscal spending and diverting money away from economically productive areas, according to Jim Cielinski, global head of fixed income at the asset manager. And it means governments will become even more dependent on bond markets, setting the...

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