Federal Reserve: The decline in the attractiveness of government bonds has led to an increase in the "natural rate of interest."

Researchers at the Federal Reserve Bank of New York pointed out that since 2019, the global "natural rate of interest" (Natural Rate of Interest, also known as r-star) has experienced a "statistically significant increase," rising by about 1 percentage point in the United States and other developed economies. The decline in the "safety" and "liquidity" appeal of government bonds is the main reason, contributing to about 50% of the increase in interest rates. In addition to the decreased attractiveness of government bonds, the productivity growth prospects driven by artificial intelligence (AI) and the surge in the ratio of government debt to GDP in various countries are also important factors pushing up interest rates