Symbolic imageIMF presses advanced economies on debt as yields climb
IMF chief Kristalina Georgieva urged advanced economies in Bangkok on Wednesday to repair public finances as bond yields surge.
IMF fiscal chief Rodrigo Valdés says, according to FAZ, that governments must consolidate before markets force them to, as global debt is set to pass 100 percent of world output by 2030. G-7 ten-year yields rose by more than a percentage point on average between February and September, to a near two-decade high. US interest spending could reach 5.7 percent of output by 2031. Bloomberg and Reuters headlines report Georgieva saying US growth alone will not shrink its debt.
Lagarde puts the onus on Paris
ECB president Christine Lagarde told CNN in Bangkok that the first and most important solution for France lies at home, through budget consolidation, Handelsblatt reports. That dampens speculation about ECB bond purchases.
Central banks flag further hikes
Bloomberg headlines report ECB officials Simkus and Wunsch pointing to more tightening, and WSJ says the Bank of England's Pill is skeptical that four rate rises are needed. Reuters reports Dombrovskis seeing no sign of a new EU debt crisis.