Weekly Market Commentary 9-15-2025

“Political Uncertainty and Global Debt Markets”
See what we have to say about the following:

 

 

 

• Political Uncertainty and Global Debt Markets:
  Political changes in France and Japan have driven a global bond sell-off, pushing long-term yields higher as shown in the “Most Developed Market Debt Levels Remain Elevated” graph.

 

• When Political Instability Meets Fiscal Profligacy:
  Political instability and high debt in Japan and France have increased market volatility and term premiums, highlighted by Japan’s exceptionally high debt-to-GDP ratio.

 

• Global Yield Curves Continue to Steepen:
  Yield curves have steepened globally, with 30-year yields rising due to increased governance risk and fiscal uncertainty, as depicted in the “Global Yield Curves Continue to Steepen” graph.

 

• STAAC Commentary and Asset Allocation Insights:
  STAAC remains tactically neutral on equities and core bonds, advising against increasing portfolio risk and favoring the two- to five-year Treasury segment with a slight preference for mortgage-backed securities.