ESRB Warns Rising Global Yields Threaten Financial Stability, Fiscal Space

The European Systemic Risk Board (ESRB) issued a warning that rising government bond yields across major economies are increasing debt servicing costs and constraining fiscal space, posing growing risks to financial stability. The statement reflects a coordinated concern among European regulators about the transmission of global rate pressures to sovereign balance sheets. The warning is likely to reinforce market expectations of tighter financial conditions and could weigh on risk sentiment.