Why Government Bond Yields Are Rising and Causing Alarm

Global government borrowing costs are surging as investors seek higher compensation for holding longer-maturity debt. Yields on 30-year Japanese government bonds are nearing all-time highs at 4.19%, and 30-year UK government bond yields have reached their highest levels since 1998. Additionally, a Bloomberg gauge monitoring government debt across Group of Seven countries shows average yields at their highest point since September 2000. This trend is also evident in rising US Treasury yields.