Global government borrowing costs have skyrocketed. The average yield on G7 bonds rose to its highest level since 2008 in mid-August, as investors demanded higher risk compensation before they were willing to hold long-term bonds. Reasons for investors withdrawing from long-term sovereign debt include rising fiscal deficits and high inflation. At the same time, as technology companies are issuing large amounts of debt to finance the construction of AI infrastructure, governments are having to seek the care of investors with companies. After US bond yields hit the highest level in nearly 20 years, the US Treasury Department announced that it would expand the scale of long-term treasury bond repurchases. This unexpected move helped stabilize the bond market and reversed some recent gains in yield, but it was not completely reversed.

Global government borrowing costs have skyrocketed. The average yield on G7 bonds rose to its highest level since 2008 in mid-August, as investors demanded higher risk compensation before they were willing to hold long-term bonds. Reasons for investors withdrawing from long-term sovereign debt include rising fiscal deficits and high inflation. At the same time, as technology companies are issuing large amounts of debt to finance the construction of AI infrastructure, governments are having to seek the care of investors with companies. After US bond yields hit the highest level in nearly 20 years, the US Treasury Department announced that it would expand the scale of long-term treasury bond repurchases. This unexpected move helped stabilize the bond market and reversed some recent gains in yield, but it was not completely reversed.