All government issued debt should be rated junk anyways.

The best case is getting paid minimum real yield on a depreciating asset, while the worst case is default and you get to eat shit. Talk about risk/reward ratios...

Moreover, if the bond is in the national currency, the base case is that the issuer will debase the currency to pay back the debt. As nostr:npub1jt97tpsul3fp8hvf7zn0vzzysmu9umcrel4hpgflg4vnsytyxwuqt8la9y likes to put it, (gov's) bonds are a contracts that the government will also steal from you in the future.

If the bond is in a foreign currency, the base case is that the issuer will manage to control the debasement of a currency that nobody wants to touch in the first place better than the currency of a stronger/more stable economy.

#macroeconomy #bonds