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Sovereign debt is not a safe haven, according to Daniel Lacalle. The economist draws attention to surging bond yields as concerns about inflation and solvency continue to grow.
Lacalle's comments reflect broader market unease over the reliability of sovereign debt as inflationary pressures mount.
Lacalle has previously stated that dedollarization was primarily a bull-market narrative, pointing to continued strong global demand for the U.S. dollar. In an earlier analysis, he noted that governments benefit most from oil price fluctuations through revenue gained from royalties, taxes, and duties, according to government oil revenue data. These observations form part of his ongoing commentary on macroeconomic risks and government finances.