‘This is as awkward as it sounds! The higher the debt-to-GDP ratio, the LOWER yields.’

The Bank of Japan, which holds a staggering 47% of ALL outstanding Japanese government #debt, has announced additional bond purchases to push #yields lower.
This is as awkward as it sounds!
The higher the debt-to-GDP ratio, the LOWER yields. pic.twitter.com/vAL0qWM87f

— jeroen blokland (@jsblokland) October 2, 2023

When your perspective is #debt sustainability on a macro level, you are right.
But consider you have the choice of lending your money to:
Country A with zero debt and a budget surplus
Country B with 150% debt-to-GDP and a budget deficit.
For which country will you demand the…

— jeroen blokland (@jsblokland) October 2, 2023