A debate on social media discusses whether central banks can end quantitative easing amid rising global debt and interest rates. While some attribute yield increases to AI-driven hyperscaler capital expenditure ($800B in 2026), critics argue the real driver is governments borrowing heavily as central banks retreat from bond markets, creating a global term-premium shock affecting Japan, Britain, Germany, France, Canada, and Australia.
Global bond markets are stabilizing after a French sell-off sparked concerns about fiscal stability, reminiscent of the eurozone crisis. France's borrowing costs surged due to political uncertainty ahead of 2027 elections and record public debt levels, widening the spread between French and German bond yields to levels unseen since 2012.