Higher Yields, Higher Debt: The G7's Rough $50B Annual Financing Hit
Higher bond yields since the start of Operation Epic Fury have raised governments’ annual borrowing costs. Alphaville estimates about $50 billion in extra debt service for the G7 this year, with the US bearing the largest share and the UK showing the biggest issuance-cost hit so far (around 71 basis points higher). The calculation compares actual new issuances against what would have been locked in at prewar yields, using both nominal and inflation-linked curves. The total could stay near $50bn if yields stay elevated, though stronger growth could offset the higher debt costs.