Bond yields hit multidecade highs as borrowing costs rise
Bond yields (basically, the returns investors get from lending money to governments) are at their highest in decades.
On Thursday, the US 10-year Treasury yield jumped to 5.34%, a level last seen in 2002.
France and Britain are seeing similar spikes.
Rising inflation, higher interest rates, and even global tensions (like between the US and Iran) are all playing a part by pushing up oil prices and making borrowing more expensive.
Major economies shift spending to debt
When bond yields go up, borrowing costs rise too: think higher mortgage rates (over 7% now in the U.S.), pricier loans, and bigger government interest bills.
In fact, countries like the UK are spending almost 4% of their entire economy just paying interest!
Major economies are now putting more money into debt payments than into things like AI or clean energy.
Plus, with G-7 nations (except Germany) carrying debts as big as their whole economies (and the US topping $40 trillion), it's a reminder that smart money management is more important than ever as things stay uncertain.