The US Treasury says the national debt now exceeds $40 trillion, double the level of just 10 years ago. (Photo: AFP)
From Japan to Europe and the United States, officials are getting antsy as bond yields hit highs not seen in a decade or more, making borrowing more expensive for governments as well as businesses and consumers.The main reason is soaring deficits and the resulting debt piles, which are fuelling doubts among investors that countries will get their financial houses in order.
And stubbornly high inflation in Europe and the US has accelerated further as the Middle East war pushes up energy prices, which may require central banks to raise interest rates.
Where are rates now?
Yields on government-issued debt rise when investors demand higher interest rates to buy or hold bonds.
