{"id":735490,"date":"2026-04-17T23:56:25","date_gmt":"2026-04-17T23:56:25","guid":{"rendered":"https:\/\/www.europesays.com\/us\/735490\/"},"modified":"2026-04-17T23:56:25","modified_gmt":"2026-04-17T23:56:25","slug":"mohamed-el-erian-warns-that-he-sees-problems-brewing-in-the-bond-market","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/735490\/","title":{"rendered":"Mohamed El-Erian Warns That He Sees Problems Brewing in the Bond Market"},"content":{"rendered":"

Mohamed El-Erian has warned investors<\/a> of problems in private credit, but he also sees trouble brewing in the market for US government debt. <\/p>\n

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El-Erian outlined his views on the Treasury market in an interview on CNBC, highlighting an emerging supply and demand issue that has him concerned.<\/p>\n

“We have developed a fundamental imbalance between the amount of issuance we’re going to see and the amount of money available to buy that issuance,” he said.<\/p>\n

El-Erian noted that it poses complications for the US economy as the government ramps up its efforts to sell more debt at a time when buyers might be scarce and as concerns are already swirling about the US debt and budget deficit. <\/p>\n

He revealed a few specific factors he sees weighing on the US bond market as new bond supply ramps up, putting downward pressure on prices and upward pressure on yields. <\/p>\n

“We’re running a deficit of 6% or 7% of GDP,” he said. “We have enormous refinancing to be done, and companies are issuing a lot more than they’ve had in the past.”<\/p>\n

El-Erian also addressed the recent statements made by former US Treasury Secretary Henry Paulson, who warned<\/a> investors on Thursday to prepare for a “vicious” bond market crash that the government is going to have to deal with. <\/p>\n

While El-Erian noted that he views Paulson’s claims as “alarmist,” he acknowledged that he sees other problems stemming from the demand side as interest from foreign buyers weakens. <\/p>\n

In February, Chinese regulators urged banks<\/a> to scale back on US debt holdings. Now El-Erian seems to think this problem is accelerating.<\/p>\n

“Buyers get nervous,” he said. “They want market solutions. They don’t want any price imposed on them. That’s a concern. But I think the fundamental issue is that the market doesn’t realize we have this imbalance that’s going to get bigger.”<\/p>\n","protected":false},"excerpt":{"rendered":"Mohamed El-Erian has warned investors of problems in private credit, but he also sees trouble brewing in the…\n","protected":false},"author":3,"featured_media":735491,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[141172,6239,13236,64,72525,41512,303821,79,303822,10067,212064,93582,13331,34204,303824,67,132,303823,68,303820],"class_list":["post-735490","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-amount","tag-bond-market","tag-budget-deficit","tag-business","tag-buyer","tag-concern","tag-demand-problem","tag-economy","tag-fundamental-imbalance","tag-investor","tag-issuance","tag-mohamed-el-erian","tag-price","tag-supply","tag-treasury-market","tag-united-states","tag-unitedstates","tag-upward-pressure","tag-us","tag-us-government-debt"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116422756802182220","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/735490","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=735490"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/735490\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/735491"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=735490"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=735490"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=735490"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}