G7 governments face an added $16 billion in sovereign debt financing costs...

G7 governments face an added $16 billion in sovereign debt financing costs since February 2026 as long-dated bond yields rise sharply. Developed-market debt is projected to reach a record $75.8 trillion by the end of 2026, intensifying fiscal pressure. The U.S., U.K., France, Italy, and Japan are especially exposed through high debt loads, weak bond demand, and rising interest bills, while Germany remains more insulated. Higher yields are driven by Middle East tensions, persistent deficit spending, and the retreat of central-bank bond buying, pulling capital toward safer government debt.

Saturday, 29 August, 2026