Sagard says rising bond yields strain European government debt dynamics
TLT•Sagard warned that weakening investor confidence could quickly raise government borrowing costs and make debt burdens harder to manage. It cited global bonds outstanding of $160.7 trillion at end-2025 and said debt dynamics are more strained in France, Italy and Britain.
1. Debt pressures vary
Sagard’s bond-market analysis warned that weakening investor confidence can quickly raise government borrowing costs, making debt burdens harder to manage. It said U.S. growth has generally exceeded borrowing costs over the past seven years, supporting improved government debt dynamics, while the gap has narrowed or deteriorated in France, Italy and Britain.
2. Bond market figures
The 10-year U.S. Treasury note yield exceeded 5% by October 9, 2026, up from near 0.5% about six years earlier. Global bonds outstanding totaled $160.7 trillion at end-2025, compared with $157.8 trillion in listed equities.
