The governments of the leading economies face about 7.7 trillion USD debt, maturing this year and higher borrowing costs. Against this background the market for bonds already showing signs of losing momentum. The amount of government bonds and other securities, representing debts for the group of economies, including Brazil, Russia, India and China, will climb by more than 8% from about 7 trillion USD in 2016.
The first significant maturing came from China, where 588 billion USD of anticipated acquisitions, which represent 132% jump from 2016.
The investors explain that they expected fiscal expansion to gradually replace monetary policy and the growth to lead to a further increase in profitability in securities. The economists and analysts expect higher bond issuance in 2017.
While signs of economic growth and increasing inflation expectations move up the yield on longer-term bonds, they are still near record lows.
In developed economies, maturing debt will increase in USA, Italy, and Germany and fall in Japan, France and the U.K. The numbers do not take into account fresh budgetary needs.
The amount of sovereign bills, notes and bonds coming due for the Group-of-Seven nations plus Brazil, Russia, India and China will climb more than 8% from approximately 7 trillion USD in 2016.
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