Why global bond markets are in turmoil

Government-bond yields are surging worldwide. Ten-year U.S. Treasury bonds approach 5%, while German bunds have risen to 2.6% from nearly 2% in December. Japanese yields are also increasing, and in Britain, gilt yields hit almost 5%, the highest since 2008.

Rising yields mean higher debt servicing costs for governments and increased financial strain on various borrowers, including mortgage-holders linked to these borrowing expenses.

Source: https://www.economist.com/finance-and-economics/2025/01/12/why-global-bond-markets-are-convulsing