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Higher U.S. yields are again pulling up other global yields and increasing borrowing costs, according to Mohamed A. El-Erian. El-Erian, who is chief economic adviser at Allianz, added that a stronger dollar is compounding the pressure on vulnerable companies and governments worldwide.
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El-Erian recently observed that nations considered U.S.-friendly, especially in Asia, have scaled back purchases of U.S. government bonds, according to Bloomberg. He has also highlighted that France overtook the UK in recording the largest government bond yield surge since the U.S.-Israel attacks on Iran earlier this year. These developments come as global borrowing costs are again rising in response to higher U.S. yields.