Japan’s 10-year bond yield crossed 3% for the first time since 1996, while the US 10-year yield neared 4.8%, as rising government debt and fiscal deficits fuel concerns over higher inflation and interest rates. Veteran banker Uday Kotak warned that central banks may eventually have to expand their balance sheets, potentially pushing inflation and short-term rates higher and triggering greater volatility in global interest-rate markets.
In a post on social media platform X, Kotak said, "As their government debt and deficits go up, central banks may have no option but to expand balance sheets( print money)."
