Investors are increasingly demanding higher returns to hold government debt, a development that is pushing borrowing costs higher and drawing attention to the growing pressures created by inflation, rising debt levels and geopolitical instability.
The change has become particularly visible in the global bond market, where yields on long-term government debt have climbed sharply in recent months. The yield on the 30-year U.S. Treasury bond recently rose above 5%, a level not seen since before the 2008 financial crisis, reflecting a reassessment of inflation and borrowing risks by investors, according to an analysis by Axios.
