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Bond yields are rising amid ongoing bond selloffs, a situation that reflects concerns about persistent inflation and fiscal unsustainability. European Central Bank President Christine Lagarde said the bond selloff will help slow inflation.
Daniel Lacalle, who serves as Chief Economist and Investment Manager at Tressis Gestion, questioned the selection process for officials in light of these economic developments.
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Lacalle has previously reported on severe inflation in other regions, highlighting Iran’s economy facing nearly 90% inflation and sharp currency devaluation in recent coverage. He also noted that China is now spending 19% of its budget servicing debt interest, overtaking the U.S. share, as described in a separate report. These developments provide further context to his recent remarks on official selection during times of economic stress.