CHART OF THE DAY: The Decline Of Safe Government Debt

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For all the talk of over-indebted world governments, and even the loss of borrowing ability in many countries, it’s worth noting that many places are seeing record low yields.

The US, Japan, Germany, Australia, The UK, Finland, and others are all borrowing at levels that are nearly as low as they’ve ever seen.

One simple reason for that? At a time when people are nervous, and hording looking to park their cash in safe assets, the availability of said safe assets are declining.

This chart from Nomura shows it nicely. Even as total debt grows, the amount which is safe (as represented by the filled in parts of each bare) is actually on the decline.

No wonder yields are so low.

chart of the day, government debt outstanding, may 2012

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