Bloomberg Surveillance · Thursday, July 30, 2026
A discussion highlights concerns about a massive increase in global bond issuance, impacting not only the US market but also Europe and China. This increased supply, combined with other factors, is leading investors to question how much premium should be priced in. The situation is described as a "bit of a different situation" than the past decade due to this compounding supply pressure.
“Yeah, I think that, you know, it's certainly concerning how how quickly this can escalate. And and the issue for the FED and the US market is that it's not just it's not just here in the United States that we have this kind of massive issuance and and kind of massive deficits. You know, the era of austerity in Germany and Europe is over. We have China, who's exporting bonds. We have these megacap hyperscalers that are issuing, you know, hundreds of billions of bonds. So all this is kind of compounding on itself and giving investors some concern of like, Okay, how how much how much more issuance is the market going to have to digest? And how high how high should we be pricing in a term premium.”
“So I think that that's the thing, is that this is a bit of a different situation that we've had the last decade because there is so much more supply coming everywhere, and so the market's not just trying to count, not just trying to figure out where where rich should be in the United States. But it's Europe, it's China, it's it's Japan and and and then it's the spread that you're getting on these kind of mega megacap tech companies, tech company long bonds too.”