All world states are called to borrow money

23.03.2021

Sasha Chorley, portfolio manager at investment and consulting company Capital Economics, in an interview with CNBC, urged investors to lend to countries around the world, noting that now is the best moment for this in the past six years.

According to Chorley, the government bond market is currently the most attractive for investors – both private and institutional. In recent weeks, there has been a sharp rise in the yield of government securities in many countries, primarily 10-year US Treasury bonds, traditionally considered as the standard of sustainability.

Meanwhile, investors demonstrate skepticism about investments in public debt and began to massively sell it, which led to an increase in profitability. One of the main reasons was the fear of a sharp rise in inflation, which could minimize profitability.