It is a worldwide phenomena but here the focus is the G7:
From Reuters, May 12/13:
The relentless rise in long-term government borrowing costs shows no sign of abating, and the list of aggravators is growing by the day. If you've been in thrall to gravity-defying stock markets this year, look no further to see where stress is building in world markets.
Debt, oil, inflation and interest-rate risks are combining with domestic political and geopolitical uncertainty, and with ebbing official and private-sector demand for long bonds, to push borrowing costsin [sic] the Group of Seven (G7) advanced economies on aggregate to the highest in more than 20 years.
The implied yield on buckets of G7 government debt with maturities of 10 years or more has risen above 4.6% this week for the first time since 2004, according to ICE Bank of America indexes. And this is just the latest installment in a post-pandemic storm that ended decades of ever-cheaper government borrowing costs, with headwinds seemingly growing stronger.
In dollar terms, the Bloomberg long-term G7 bond investment index has now almost halved in price from its record peak 10 years ago, and it's still falling.
As 30-year U.S. Treasury borrowing costs topped 5% again this week and stalked their highest in almost two decades, Britain's 30-year gilt yields hit their highest since the 1990s, and Japan's equivalents are once again on the cusp of record highs....
