Bond Tab for Biggest Economies: $7.43 Trillion in 2014

To what degree are increases in bond yields affecting the refinancing of sovereign debt around the world?

The world’s biggest economies will need to refinance $7.43 trillion of sovereign debt in 2014 as bond yields begin to climb from record lows, threatening to raise borrowing costs while nations struggle to bring down elevated budget deficits.

The amount of bills, notes, and bonds coming due for the Group of Seven (G-7) nations plus Brazil, Russia, India, and China (BRIC) is little changed from 2013 after dropping from $7.6 trillion in 2012, according to data compiled by Bloomberg. At $3.1 trillion, representing a 6 percent increase, the U.S. faces the largest tab. Russia, Japan, and Germany will see refinancing needs drop, while those of Italy, France, Britain, China, and India increase.

Japan will have $2.38 trillion of bonds and bills to refinance this year, 9 percent less than in 2013, while the amount of German debt maturing this year will decrease by about 5.3 percent to $268 billion.

Including interest payments, the amount of debt that needs to be refinanced by the G-7 countries plus the BRIC nations this year increases by about $712 billion to $8.1 trillion, according to data compiled by Bloomberg.

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