Global bond yields are hitting levels not seen since 2008-2011, with Japan’s 10-year yield holding above 3%, U.S. Treasuries at their highest since November 2023 and UK gilt yields reaching a post-2008 peak, driven by heavy government debt issuance and oil-price-driven inflation concerns. This rate environment forces governments to refinance debt at higher costs, businesses to pay more for financing or AI projects, and consumers to face uneven pressure with lower-income households bearing a larger share of their earnings in debt servicing. Equity markets could eventually suffer from rising yields, which make safer government bonds more attractive and reduce the present value of future corporate earnings. Deutsche Bank forecasts that 10-year Treasury yields could climb to around 5.5% over the next year.
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