With interest rates on government debt having gone from near zero to much higher levels in recent years, rising short- and long-term bond yields have cast doubt on the sustainability of some debts and led many to wonder if a crisis might be looming. While some countries are more protected than others, none is immune.
NEW YORK—Large, growing budget deficits and rising public debt-to-GDP ratios in advanced economies are rattling markets. With interest rates on government debt having gone from near zero (and even negative, in some cases) to much higher levels, rising short- and long-term bond yields have cast doubt on the sustainability of some public debts and led many to ask if a crisis might be looming.
