- The Global 10Y Bond Map
- The Yield Table
- The Inverted Yield Table
Just a few days ago there was another thread created showing all the countries and their government debt in relation to GDP. I found it alarming that so many countries are close to the 100% GDP level with their debt. There is no way that the majority of developed nations can reduce their debt levels considerably in the next 10-20 years. And now looking at the returns of the government debt I wonder who is actually still giving their money to the government. Comparing the short and medium term yields to the inflation rates it doesn't make any sense to buy anything below 5-10 year debt, and even then you are just offsetting your inflation losses and don't make any real returns. To me this seems like a really bad investment and traders don't except any government collapses to give them their money so freely. Nouriel Roubini has warned about the rising debt levels in his recent book Mega threats. If interest rates keep rising we could see a wave of government defaults and bond holders losing a lot of money. I would rather invest my money differently than buying government bonds.