What is driving the deficit to historic highs? Should investors be concerned that rising budget deficits could spur inflationary pressures and higher interest rates? Is the bond market reflecting the deficit pressures? With deficit levels expected to remain high over the next few years, what would be the best investment strategy for bond investors? In this study, we look to answer these questions, with a primary focus on linkages between federal deficits and bond markets.
- Regions: United States
- Authors: Radhika Kamath
- Products: Datastream
- Keywords: bonds, budget deficit, economics, fixed income, GDP, interest rates
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