Money

Western governments are borrowing at record highs – does it matter?

Published

2 years ago

March 7, 2024

In its latest report on global debt, the Organisation for Economic Co-operation and Development has projected a surge in government borrowing, reaching an unprecedented $15.8 trillion this year.

The Paris-based research body revealed that gross borrowing, encompassing both refinancing of maturing bonds and new issuances, climbed from $12.1 trillion in 2022 to $14.1 trillion in 2023.

This substantial increase in borrowing is attributed to the ongoing economic repercussions of the COVID-19 pandemic, which prompted governments worldwide to embark on massive borrowing to support households and businesses.

The OECD noted that the total borrowing is expected to surpass the previous peak of $15.4 trillion recorded in 2020.

A significant portion of this year’s borrowing, approximately $12.6 trillion, will be directed towards refinancing maturing bonds issued during the pandemic.

However, the surge in inflation post-pandemic has led to higher interest rates, causing the average cost of new borrowing for governments to spike to 4% in 2023 from 1% in 2021.

Economic output

Consequently, the cost of interest payments for governments has escalated, accounting for 2.9% of annual economic output in 2023 compared to 2.3% in 2021.

The OECD warned that this trend is expected to continue, projecting a further half-percentage-point increase in interest payment costs by 2026.

Moreover, governments are anticipated to encounter challenges in finding buyers for their debt as central banks begin to reduce their holdings of government bonds, which were amassed in efforts to stimulate growth and inflation following the global financial crisis.

With central banks gradually withdrawing from the bond market, the OECD highlighted the need for governments to attract more price-sensitive investors, such as non-bank financial sectors and households.

The report supported that central banks in OECD member countries currently hold government bonds equivalent to 30% of annual economic output, mirroring the surge in total government debt since the financial crisis.

The OECD anticipates a record level of net bond supply to be absorbed by the broader market as central banks embark on quantitative tightening.

Money

RBA rate shock: ASX200, Gold and Crypto market

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

Published

21 hours ago

February 10, 2026

Harvey Vargas

RBA’s interest rate shift impacts ASX200, AUD; gold/silver rebound analyzed amidst upcoming economic data and crypto market navigation.

The RBA’s latest interest rate decision has sent ripples through the ASX200 and AUD, leaving investors weighing what comes next. We break down how these changes could affect global equities ahead of this week’s crucial non-farm payroll and consumer price index releases.

Zoran Kresovic from Blueberry Markets shares his analysis on the rebound in gold and silver after recent market turbulence, and what factors could drive further gains or sell-offs in the commodities market.

We also dive into the current state of cryptocurrencies, exploring how investors can navigate volatility and what to watch as economic data continues to shape market sentiment.

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#RBA #ASX200 #GoldMarket #SilverRebound #CryptoUpdate #InvestingTips #MarketVolatility #EconomicOutlook

Money

Dow hits record while tech stocks drive market gains

S&P 500 rose 0.7% with Nvidia and Broadcom driving gains; investors await delayed January jobs and inflation reports.

Published

22 hours ago

February 10, 2026

Harvey Vargas

S&P 500 rose 0.7% with Nvidia and Broadcom driving gains; investors await delayed January jobs and inflation reports.

The S&P 500 rose 0.7% on Monday, powered by gains in technology stocks, while the Dow Jones Industrial Average hit new heights. Investors are eagerly awaiting crucial economic reports this week.

Nvidia and Broadcom were among the standout performers, climbing 3% and 4% respectively, continuing the momentum from the previous session. The market rebound comes after significant losses earlier last week, with the Dow exceeding 50,000 for the first time ever on Friday.

Investors now turn their attention to the delayed January jobs report from the Bureau of Labor Statistics, due Wednesday, and the consumer price index for January, expected Friday with a 2.5% annual rise.

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Money

Tech stocks slide as investors rotate into small-cap and value plays

Nasdaq drops 1.84% amid turbulent week; investors pivot to cyclical and value sectors from high-growth tech.

Published

2 days ago

February 9, 2026

Harvey Vargas

Nasdaq drops 1.84% amid turbulent week; investors pivot to cyclical and value sectors from high-growth tech.

U.S. equity markets wrapped up a turbulent week with mixed results. The Nasdaq Composite fell 1.84%, marking its worst week for large-cap technology stocks since November, while the S&P 500 remained largely unchanged. Investors are weighing concerns about artificial intelligence and potential overinvestment in high-growth areas.

Meanwhile, smaller-cap and value-oriented stocks continued to add to their year-to-date gains. Market participants rotated into cyclical sectors that had lagged, reflecting a shift in investor sentiment and appetite for risk outside the traditional tech heavyweights.

Analysts say this rotation highlights the broader market’s evolving dynamics, as growth concerns collide with opportunities in underappreciated areas. Stay tuned for further developments as the market digests these trends.

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