More debt

The first half of 2026 has brought a new record in sovereign bond issuance. More than 500 billion dollars of government debt has come to market, with Italy and the UK among the largest contributors.

The key message is not about one country. It is about the trend. Public finances remain under pressure, even though we are no longer in a pandemic or crisis environment. Debt supply keeps rising, and the bond market is being asked to digest more and more paper.

This matters because governments do not borrow in a vacuum. The more they issue, the more investors may demand to be paid. Higher yields then feed directly into interest costs, leaving less budget room elsewhere.

There is no immediate drama in the chart. But there is a clear warning: when deficits stay high for too long, the bond market eventually starts asking questions.