Global debt hits record of near $353 trillion, with signs of move away from US

Investors are showing signs of diversifying away from U.S. Treasuries as global debt levels hit a record of nearly $353 trillion by end-March, a report by the Institute of International Finance published on Wednesday found. IIF’s quarterly Global Debt Monitor said that strengthening international demand for Japanese and European government bonds contrasted with broadly stable demand for U.S. Treasuries since the start of the year. “These trends partly reflect diverging debt trajectories, which are increasingly influencing investor allocation decisions,” Emre Tiftik, director at the IIF for Global Markets and Policy, wrote. “Under current policies, the U.S. debt-to-GDP ratio is expected to continue rising, and recent Congressional Budget Office projections indicate a further deterioration in the long-term fiscal outlook.”