Debt, Deficits and Policy Jitters Shake Global Bond Markets

Global bond markets have become volatile as rising US debt and persistent deficits prompt a reassessment of fiscal risk, pushing US yields near multi‑year highs and lifting inflation concerns tied to Middle East tensions and climate shocks. Investors expect rate rises from major central banks (ECB, UK, Japan) and a shift in funding costs worldwide, with knock-on effects for governments, corporates, and households; while the week’s sell-off eased somewhat, yields remain well above levels from three months ago.