Government bond yields in the U.S., Japan, and Germany have reached their highest levels in decades. This surge increases borrowing costs for governments, corporations, and consumers.
Rising rates pressure public finances while making mortgages and business investments more expensive. Persistent inflation and large government deficits continue to fuel the market sell-off.
A surge in debt issuance from technology companies funding artificial intelligence projects is competing with government bonds for capital. This corporate borrowing adds significant upward pressure on global interest rates.