Government debt issuance has surged globally as fiscal expansion and persistent inflation risks force sovereigns to tap markets more aggressively.
The spike in supply comes as investors grapple with the dual pressures of higher borrowing costs and tightening liquidity conditions, triggering a broad-based selloff in bond markets.
The World Bank recently warned that even governments with fundamentally sound balance sheets face default risks if they lack immediate liquidity to service debt obligations.
US Treasury yields climbed on Monday, reflecting the market's reaction to the increased supply of sovereign debt.
The 10-year Treasury note yield, a key benchmark for global borrowing costs, rose as fears of resurgent inflationary pressures weighed on investor sentiment.
The move underscores the growing tension between governments' need to fund fiscal deficits and investors' demand for higher compensation for inflation risk.
The World Bank recently warned that even governments with fundamentally sound balance sheets face default risks if they lack immediate liquidity to service debt obligations.