Rising Defense Spending Sparks Global Bond Market Selloff
(Bloomberg) -- Bond yields jumped on Monday as investors prepared for a surge in government borrowing to fund defense following weekend talks among European leaders on how to support Ukraine. The prospect of more European defense spending has been growing in recent weeks, and gained new urgency following a contentious meeting between US President Donald Trump and Ukraine’s Volodymyr Zelenskiy on Friday. Over the weekend, leaders from across the continent gathered in London to hammer out new pledges for military investment and recommit to Ukraine’s.
- As defense spending increases globally, governments may need to adjust their fiscal priorities, potentially diverting funds away from other vital public services like education or healthcare.
- How will the resulting fiscal policies impact the global economy, particularly among countries with already high levels of debt burdens?