With 30-year U.S. Treasuries hovering above 5% at one point this week and long-term bond yields rising in the U.K., France, and Japan, leaders are facing tough choices when it comes to managing risk, liquidity, and volatility.
When asked, most of the leaders I talk to expect their borrowing costs to trend up, not down, in this environment. Among other things, Treasury yields are the benchmark for other lending. And rising public debt tends to erode confidence in a currency and an economy.
